Brendan Smith (Cavan-Monaghan, Fianna Fail)

The sheep sector is a valuable part of the economy with two-thirds of its product destined for export and its future dependent on its ability to meet the needs of the market. I have always acknowledged this fact and have developed a strategy to provide specific supports to the sector.

On the financial side, I assigned €7 million from the 2009 single farm payment national reserve to 13,000 hill sheep farmers under the uplands sheep payment. As the Deputy is aware, earlier this month I launched a three-year €54 million grassland sheep scheme, the funding for which comes from unused single payment funds. Its main objective was to provide a much-needed boost to sheep farmers' incomes. As the scheme focuses on flocks with breeding ewes, it should also provide an incentive to farmers to maintain their production levels, which is vital for the future of a viable sheep industry in Ireland. This scheme should underpin other initiatives being taken to assist the sector. Bord Bia will spend up to €1 million this year on the promotion of sheep and lamb at home and abroad and Teagasc has allocated almost €1.5 million for sheep research during the course of this year.

Work is also being undertaken by the Department, its state agencies and the industry on foot of the recommendations of the sheep industry development strategy group, commonly known as the Malone report. This report provides a clear framework for progress for the sector. While the responsibility for implementing most of the group's recommendations fall on the industry, several are within the remit of the Department and the state agencies under its aegis, which have made significant progress in implementing them.

I refer to some of the initiatives taken, including the establishment of Sheep Ireland to take over the Department's current breed improvement programme and develop a new one. An interim sheep board, comprising representatives of farming organisations and breeders, will oversee this process with the Irish Cattle Breeders Federation providing the technical and professional service required. Another initiative is the establishment of the lamb quality assurance scheme in 2007. This scheme is operated by Bord Bia and now has approximately 8,085 participants. In addition, Bord Bia has also intensified its efforts to promote lamb on the home and export markets. Together with its UK and French counterparts, it is part of a generic promotion campaign on the important French market. Finally, Teagasc has developed a comprehensive plan to restructure its sheep support services, including a better farm programme for sheep, which aims to establish focal points for the on-farm implementation, development and evaluation of technology relevant to the sheep sector. This approach provides an opportunity to engage with sheep farmers on the use of the latest management practices and to identify research and development needs.

The support provided for processing facilities under the beef and sheepmeat capital investment fund underlines the Government's commitment to the sector. Also, under the rural development programme, an indicative figure of €8 million has been allocated for sheep fencing and mobile handling facilities to help sheep farmers in reducing labour input. I am confident all the initiatives outlined will be of significant assistance in developing a strong and sustainable sheep sector in future.

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