Mary Wallace (Meath East, Fianna Fail)

The Kerry Group has indicated that it will shortly cut 50 jobs at its Henry Denny plant in Tralee. The Kerry Group took over the Denny plant in 1982. It ceased slaughtering pigs in the early 1990s and since then it has engaged in meat processing. I understand from the company that the reason for this move is that demand for the type of primary cuts that were traditionally manufactured at the Tralee plant has declined and therefore the operation there is no longer viable. Consumers have switched to a preference for convenience foods and ready meals. Nevertheless, 30 jobs will remain in place in Tralee where bacon curing will continue to be the main activity.

Decisions of this nature are entirely a matter for management of the company and we have no involvement in decisions regarding the location or nature of commercial activities. The Department of Agriculture, Fisheries and Food maintains a veterinary presence at the Denny plant for the purpose of monitoring compliance with hygiene legislation.

The Irish meat processing industry is in a robust state notwithstanding that this is a very competitive business. The sector has shown the degree of innovation and consumer focus needed for success in the global food market. The export of processed products, prepared meals, etc., is making a valuable contribution to export earnings. It is creating significant employment and, importantly, is adding value to our primary agricultural output.

Last week, the Minister, Deputy Coughlan, launched the 2007 edition of Quality Food Founded on Science, which features the projects funded under the food institutional research measure, FIRM. Investment in knowledge and innovation is critical to the continued success of the agrifood sector and the Government has steadily increased the funding available for research. We believe that the concerted efforts of the research community, the food industry and the State will position the sector to meet the ever-evolving demands of the international consumer.

The pig sector is an important element of the food processing industry. The main current concern for pig producers is the erosion of profit margins due to the very high cost of feeding stuffs. The Minister, Deputy Coughlan, has in recent times, worked with her EU colleagues, both at Council and bilaterally, to put in place steps aimed at improving the situation and ameliorating some of the difficulties being caused by the increased cost of inputs. These steps include a suspension of the obligation to set aside 10% of arable land. The European Commission is also examining ways of synchronising the authorisation process for genetically modified feedstuffs in the EU and the US to try to improve the efficiency of these arrangements.

We will continue to pursue appropriate measures aimed at addressing current income difficulties. A scheme of financial assistance for the private storage of pigmeat was put in place in recent weeks. This was adopted by the European Commission in response to a request from Ireland and some other member states. We have also impressed on the Commission the desirability of export refunds for fresh and frozen pigmeat. A proposal in this context will be discussed at this Thursday's meeting of the EU pigmeat management committee.

The question of compliance with legislation on the protection of the environment is an area of major importance for the future of the pig sector. It will have significant cost implications and will give rise to operational complexities for producers. We have established the intensive livestock group to help the pig and poultry sectors to find solutions to manure disposal problems arising from the nitrates regulations. The work of this group is continuing.

The case highlighted by Deputy Ferris relates to consumer affairs. Pigmeat features prominently in Bord Bia's programme of promotion on the home and export markets. I have asked the board to intensify its national pork and bacon promotion campaign and additional funding is being made available to that end. Bord Bia's quality assurance schemes help to maintain consumer confidence. The pigmeat scheme is well established and managed.

On exports, Bord Bia's marketing initiatives and overseas promotion drives relate, inter alia, to pigmeat. The Department of Agriculture, Fisheries and Food maintains an extensive scheme of controls in respect of the hygienic production of pigmeat and the operational procedures which are required to underpin the certification of pigmeat for markets worldwide.

We are working with the Minister for Health and Children on the introduction of legislation to provide better information to consumers on the origin of pigmeat and other meats. The process of public consultation on the proposed regulations has been completed and the comments received are being examined. The draft legislation will be notified to the European Commission thereafter.

Other relevant support actions on the part of the Department include the extension of the farm waste management scheme to the pig sector, the development of the programme of financial assistance for the transition to welfare-friendly sow housing and the continuation of the programmes for the monitoring and control of animal diseases. I will continue to work closely with the food industry to develop and implement measures which will ensure that the Irish agri-food sector continues to make an important contribution to the national economy and export earnings.

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