Seán Connick (Wexford, Fianna Fail)

I was surprised to hear Deputy McEntee say the farmer kept the car. In our experience he bought the new car, the new tractor etc. The money trickled down.

I should like to address in particular forestry and fishery aspects of Food Harvest 2020 and give an indication as to how I see these sectors contributing to the overall growth targets. In the forestry sector I am delighted to announce the roll-out of the autumn planting programme, 1,000 hectares, which I have instructed my officials to allocate today. That is good news for the forestry sector, particularly in the autumn planting season. That is coming on the back of the extra 6,000 hectares planted already this year. This takes us to a total of 7,500 hectares which it looks as if we will plant for 2010. The sector is currently playing a very important role in Ireland's economic recovery, especially in the export market. It is contributing to the ongoing development of an indigenous and renewable energy source. Enormous expertise has been built up in the sector and I have been delighted over my recent months in this position to get to know many of the people working in the industry, from the nursery workers to the foresters, and indeed the companies involved in thinning, as well as those involved in the new biomass industries that are starting to appear.

I was very struck by the number of small businesses I encountered at the ploughing championships. These were small companies of between four and eight people employing people in a whole new sector. I wish them well and continued success and hope this sector will continue to grow. The current upturn in timber prices is a welcome boost to the sector and the forestry owners already committed to forestry. The prices remain buoyant and the saw-milling sector is working extremely hard to increase its share of the export markets through innovation, competitiveness and co-operation, all the key principles in Food Harvest 2020.

Later this evening I shall be in Deputy Doyle's constituency in Wicklow where we are announcing the RDS forest awards, and I hope to see him there. Again, it is in recognition of the hard work being put in by people within the sector.

On the specific recommendations in Food Harvest 2020, my Department was involved in the formation of a number of the producer groups and continues to facilitate these groups, which are now supporting farm forestry owners in achieving economies of scale and to develop sustainable markets. Teagasc also provides key guidance and knowledge in this matter and it is crucial for the processing sector and the renewable energy sector that this resource is mobilised.

Another significant return from the State's investment in forestry, some €1.25 billion since 200, reflects the crucial role our forests play in combating climate change. Over the five year period 2008-12 the Kyoto-eligible forests – planted since 1990 – will sequester an estimated 11 million tonnes of carbon dioxide and this has a net value of €165 million, assuming a carbon credit price of €15 per tonne of CO2. By 2020 Ireland's Kyoto-eligible forest could be sequestering up to 4 million tonnes of CO2 per annum. This is a significant contribution towards achieving Ireland's Kyoto climate change commitments. Timber is a sustainable, renewable, carbon-neutral source of energy and plays a key role in the displacement of imported fossil fuels. This in itself also helps to address environmental issues.

My Department is also contributing towards the development of the forestry sector through its investment in forestry research, development and promotion, all key components of the approach recommended in Food Harvest 2020. There are currently three reviews on forestry issues underway in my Department: a review of the national forestry policy, a review on the grants scheme and a review of Coillte. The recommendations from these reviews will assist me in developing a strategy for the future. The recommendations in Food Harvest 2020 will also provide a useful framework from which to maximise returns from forestry in the decade ahead.

Turning to the seafood sector, this is an area I have been able to visit in the last couple of months. Our six fishery harbours have enabled me to meet the wide variation of industry representatives, and I have garnered a new respect for those people who work extremely hard under very difficult circumstances in this sector. However, we must acknowledge that enormous work has been carried out and we can see the improvements right around the coastline, from Killybegs to Castletownbere, Rossaveal and Dunmore East. Recently I was in Howth and my last harbour to visit will be Dingle, which I hope to do in the coming weeks.

I have been surprised by the amount of investment we have seen there. I am talking about hundreds of millions of euro and there is infrastructure now in place that will last for many generations. Perhaps RTE might do a "Prime Time Special" on the work that has been carried out on all these harbours and piers, because it is something of which many people are not aware. To see the level of expertise and the development that has taken place is somewhat astonishing.

I have also been in the happy position in recent times to announce there will be €900,000 for small harbours and piers around the country. Again, that is something that will boost the harbours around the country in terms of our inshore fishermen, in particular, as well as marine tourism. This latter is becoming more important in our fishery harbours and we are working closely on this in terms of the tourism aspects.

The prospects for the seafood sector at both global and European levels are very favourable, especially in the medium to long-term. It is estimated an additional 30 million tonnes of seafood will be needed by 2030 to meet the food demands of the growing world population. This increased demand offers great potential and opportunities for Irish seafood companies.

In tandem with this growing consumer demand there is increasing focus, particularly within Europe, on sustainable production and seafood maintenance, biodiversity and avoidance of damage to the marine environment.

I am acutely aware of the difficulties within the aquaculture sector and am working extremely hard with my officials in this regard. Indeed, I sit on the marine co-ordination group set up by An Taoiseach, which is trying to break down the barriers and address the issues of concern we have with the European Parliament in relation to restrictions on mature sites and having the appropriate assessments in place to allow our aquaculture industry to develop and grow. Much of this work is at an advanced stage and I am focusing hard to ensure we break down these barriers to get the industry back up and running and to ensure we have the cleanest waters possible right around the coast and with the best and highest quality seafood we can deliver into a market in which we know we have enormous potential to grow and to create jobs.

These factors were highlighted in Food Harvest 2020, which included 15 specific recommendations on seafood designed to capitalise on the growing economic opportunities available for growing this high-value, labour intensive and rural orientated sector. At EU level our dependence on imported seafood is quite alarming. More than 65% of seafood consumed in Europe is imported. This clearly presents opportunities for Ireland to develop its seafood sector, with an emphasis on the EU market. Currently, around 85% of our seafood is delivered in basic fish format without maximising added value. This commodity approach leaves us in a position of very much undifferentiated price takes, dependent on buyers who can move their purchases easily. It is essential that our seafood products are processed, developed, packaged and marketed to realise more reliable markets and better prices.

BIM has made considerable progress in assisting the seafood sector in being more innovative. Since its launch in 2009 in excess of 60 companies have used the innovation facility at its seafood development centre in Cork. This means the facility is well on its way to delivering its ambitious target of €100 million in additional value added sales over the next five years. We really believe this target is achievable and we even hope to exceed it.

This Government continues to provide financial assistance to the seafood sector through the Irish national seafood programme, which I launched with the Minister, Deputy Brendan Smith, in July this year. This programme provides Exchequer-funded support to the seafood sector to develop new products and processes, innovate, add value to products, maintain and improve environmental and food quality standards and improve our cost efficiency. On 24 September I announced grants totalling €1.75 million to 15 seafood companies under the programme for investment projects, worth €6 million. This again was to protect jobs and increase potential for further employment within the sector.

In these economically troubled times this financial support represents a significant vote of confidence by Government in the potential of the seafood sector. Together with the Minister, Deputy Smith, I also launched the BIM strategy 2010-12, Delivering on the Potential of Irish Seafood, in July this year. This three year strategy will be delivered by BIM. Its shorter timeframe and targets are designed to contribute to the achievement of the targets in Food Harvest 2020, and the level of progress achieved will be a valuable marker of the efficiency of the actions being taken under that report's recommendations. Again, this strategy aims to create 600 additional jobs across the Irish seafood sector, develop an additional €15 million in value added seafood sales, differentiate 40,000 tonnes of seafood, worth approximately €120 million as eco-levelled and of Irish origin, increase aquaculture capacity by approximately 10,000 metric tonnes – worth an estimated €18 million in new sales – and deliver 3,500 training places to the seafood sector in more than 30 coastal locations annually.

Some reservations have been expressed today about the implementation process, and I will deal with that point. Let us take the recently announced dairy expansion group as an example, although the work we are doing in the aquaculture sector is also relevant. There is a clear need to take immediate and commercially sensitive decisions to make sure that we expand production and that we have sufficient and competitive processing capacity. With that in mind, the Minister, Deputy Smith, set up the dairy expansion group, with representatives from Teagasc, which has expertise in maximising output; farmers, who are able practitioners and are best placed to assess the advice given and use it to increase production; and industry CEOs, the key movers in ensuring streamlined and competitive processing capacity. In November, this group will report back to the high-level committee chaired by the Minister with its decisions. The Deputies can see that we are making progress in this sector.

This is a focused action group representing the key actors along the food chain. The members' task is to work collaboratively and constructively and arrive at the necessary decisions within a short timeframe. This type of cohesive and directed action group is one important way to achieve the desired buy-in by participants to ensure that the outcomes envisaged in Food Harvest 2020 are achieved.

See this speech in context