Dáil debates

Wednesday, 2 March 2005

3:00 pm

Photo of Pat CareyPat Carey (Dublin North West, Fianna Fail)
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Question 72: To ask the Minister for Agriculture and Food if she will report on the measures taken to assist the marketing and processing of agricultural products. [6869/05]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The National Development Plan 2000-2006 contains an indicative funding allocation of €358 million to the food industry for a range of measures covering capital investment, research, technology and innovation, marketing and promotion and human resources. A total of more than €72 million has been awarded to date in respect of the capital investment scheme administered jointly by my Department and the development agencies.

The element of the capital investment scheme administered by my Department assists capital projects which are intended to improve marketing and processing in the horticulture, potato, eggs, grain and livestock sectors which do not fall within the remit of the industrial development agencies or are not covered by my Department's on-farm schemes. In general, investments must exceed €100,000 and up to 40% grant aid is available. Following calls for applications in 2002 and 2004, my Department has allocated €30.31 million in respect of 112 projects across the various sectors as follows: grain sector — 31 projects, €12.60 million awarded; potato sector — 21 projects, €7.23 million awarded; livestock sector — 35 projects, €4.08 million awarded; horticulture sector — 18 projects, €3.64 million awarded; and egg packing sector — seven projects, €2.76 million awarded.

The client companies supported by Enterprise Ireland are primarily Irish manufacturing and internationally traded services companies employing ten or more people, Firms located in the mid-west are supported by Shannon Development, while firms in the Gaeltacht areas are supported by Údarás na Gaeltachta. The support mechanisms available from these development agencies to food companies engaged in marketing and processing of agricultural products include non-repayable grants, preference shares and ordinary share capital. The development agencies have also awarded a total of €42 million to client companies towards capital investment activities under the national development plan.

The measure relating to marketing and promotion is implemented by Bord Bia. The objective of this measure is to support the marketing and promotion of food and drinks products by facilitating the development of new markets and the expansion of current markets. Assistance is provided in the form of individual company support and support for the development of the industry as a whole. Under the NDP to date, almost €30 million has been committed by Bord Bia on these marketing and promotional activities.

Photo of Denis NaughtenDenis Naughten (Longford-Roscommon, Fine Gael)
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The Minister of State has made a great case for some type of co-ordination in this regard which is not currently in place. In light of that, would he agree we need a single food industry development agency and a comprehensive marketing programme for our indigenous food companies, as set out in the enterprise strategy plan now abandoned by the Government? In that context, why were those two proposals not included in the action plan the Government approved last week? Why has the Department of Agriculture and Food been left out of the loop regarding the implementation plan, in which six other Departments are involved?

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I reject every comment and submission the Deputy has made. He is making allegations that are totally without foundation. Obviously, Fine Gael has changed policy in recent years in that, when Bord Glas was amalgamated with Bord Bia, the party vehemently opposed the proposal. Now it is advocating a greater rationalisation of organisations. In recent years, Bord Bia has undertaken excellent work and it is being carried out both directly by the Department in funding product development, research and innovation and by the development agencies. More than €300 million has been allocated in the national development plan towards food-related initiatives. A very substantial portion of that allocation has already been drawn down.

We talked earlier in reply to Deputy Sargent's questions on the potato sector. The Department has provided very substantial funding towards research, innovation, provision of new facilities and marketing of products. The programmes in place are successful and are bringing about real improvements and generating additional employment.

The Deputy is misrepresenting the report on enterprise strategy too, which did not make recommendations that were food-specific. It made recommendations regarding the general competitiveness and workings of the economy. In my constituency last week, I spoke to several people involved in the artisan and speciality food sector. One thing they mentioned to me was that recently the decrease in insurance costs had been an extremely positive development for such projects, really making them competitive and helping them achieve the scale of costs they desire.

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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Before Deputy Crawford speaks, I remind him that we have not yet required the desirable aspiration that Members restrict their supplementary questions to four minutes. The Deputy may be breaching that now, and I ask him for a very short supplementary question.

Photo of Seymour CrawfordSeymour Crawford (Cavan-Monaghan, Fine Gael)
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That is the second time in the House today that I have been told the minute I have got up to speak that there is no time available. I wish to ask the Minister of State only one question. Is he satisfied that there should be a minimum limit of €100,000? There are small, family-owned food industry units. I am thinking of some butchers that act as wholesalers and are under tremendous pressure to meet all sorts of unique standards without grant-aid being available.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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There are some projects calling for assistance that have lower-scale costs, and that is among the issues being addressed in the Department.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Is any special consideration being given to marketing of food arising from EU expansion, regarding both threats from imports and opportunities for us? There is particular concern about the mushroom industry.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The Deputy will be aware that a mushroom task force met some years ago. It reported last year, and departmental officials and I have met it and stakeholders in the industry. They have been under particular pressures regarding products coming from eastern Europe, particularly to the British market, to which we predominantly exported. Those issues are being addressed, and very substantial progress has been made in implementing the recommendations of the mushroom task force. We are conscious of the challenges and opportunities that have arisen as a result of the expansion of the European Union to 25 states. It is not all challenges, since there are opportunities too.

Photo of Seymour CrawfordSeymour Crawford (Cavan-Monaghan, Fine Gael)
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The mushroom industry is going out of business.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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It is not.

Photo of Trevor SargentTrevor Sargent (Dublin North, Green Party)
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Have there been any discussions recently with the Minister for the Environment, Heritage and Local Government, Deputy Roche, regarding not simply retail planning guidelines, which are probably most on his mind in this regard, but the casual trading possibilities of farmers' markets, something he has mentioned previously? What progress has been made in bringing us up to the standard that operates in France, for example, which seems to have market advantage and, accordingly, a very positive image internationally as a food country?

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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On the last occasion the Deputy tabled questions, I believe that he was due to visit Ranelagh on the following Sunday, so I hope he had a good afternoon there.

Photo of Trevor SargentTrevor Sargent (Dublin North, Green Party)
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Yes, and I have had many more since.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Good for him that he can get away from his constituency on a Sunday; most of us do not get that opportunity. We might get to a football match within the county, or outside if our team is playing away from home. The Deputy may have read that recently there was a seminar or conference in Cork regarding farmers' markets.

Photo of Trevor SargentTrevor Sargent (Dublin North, Green Party)
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I was at it.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Good. Judging by the reports that I have had from Bord Bia and departmental officials, it was a very successful conference. Local authorities are facilitating the development of farmers' markets throughout the country, and the Office of Public Works, following correspondence between the Minister of State and me, is also anxious to facilitate such development where feasible. Bord Bia, working in conjunction with the various Leader programmes, is eager to develop the farmers' markets, which are proving very successful. There are several areas where we would like to see their further growth and development.

Photo of Trevor SargentTrevor Sargent (Dublin North, Green Party)
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Will the Minister of State discuss the matter with the Minister for the Environment, Heritage and Local Government, Deputy Roche?

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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It is a matter for the local authorities to implement planning regulations on the ground. As the Deputy knows, it need not go the Customs House.