Brendan Smith (Cavan-Monaghan, Fianna Fail)

The agrifood sector is Ireland's most important indigenous sector, providing hundreds of thousands of jobs throughout every county at producer and processor level. The sector was never more important to the Irish economy than it is now. We are justifiably proud of our reputation as "Ireland the Food Island" and, notwithstanding current economic difficulties, the Government is continuing to invest hundreds of millions of euro at farm and processor levels.

As a food producing country, it is essential that we have a robust food industry that provides an outlet for our producers and adds value to the primary product. Irish food, drink and horticulture exports last year were worth in excess of €8 billion. I share Bord Bia's view that the industry has the potential to boost annual export returns by more than 20%, thus reaching €10 billion by 2011.

The sector generates output of €20 billion annually. It has been and continues to be supported at primary, processing, research and marketing levels through a range of measures undertaken in line with the strategy set out in the agri-vision 2015 report. The food industry is vital to our economic future, in particular at this time in terms of employment, value-added and export earnings. While it is undoubtedly facing challenges it has in the past demonstrated its resilience and capacity to adapt to competitive challenges and to build business in emerging and changing markets.

Building on the natural advantages of food production in Ireland and applying the highest standards of food safety, the sector has been transformed into a sophisticated industry well capable of competing on worldwide markets. In more recent times, mainly because of the depreciation of sterling and general contraction of demand, the competitive pressures on the sector have become more acute. The Government is conscious of the factors impacting on the industry and is actively engaged in identifying ways in which we can continue to assist the sector's development and growth.

While it is essential that we continue to identify and build new export markets for our food and beverages, it is equally important that we have a strong domestic market for Irish food and drink. A strong domestic presence is an essential factor in developing export markets. In this regard, we need an Irish retail sector that maintains a strong commitment to sourcing and providing a comprehensive range of familiar Irish products and brands. Ultimately, of course, it is a matter for consumers if they wish to support quality Irish food products, indigenous Irish suppliers and Irish jobs.

I strongly agree with the Tánaiste that retailers must strike a reasonable balance between granting price reductions to consumers, a practice with which none of us would disagree, and giving to suppliers and producers a fair return, which is essential to the maintenance of thousands of Irish jobs and the survival of primary producers.

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