David Stanton (Cork East, Fine Gael)
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Question 9: To ask the Minister for Agriculture, Fisheries and Food her plans to improve the incomes of potato farmers; and if she will make a statement on the matter. [7117/08]

Trevor Sargent (Dublin North, Green Party)
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I will do my best but I will be reading very fast.

Potato production in Ireland is mainly focused on the fresh ware market serving domestic consumption. Investment in storage facilities has resulted in the availability of quality ware potatoes for almost the entire year. At retail level, there have also been major changes over the past decade with the multiples exacting major influence on the market. Buying power is now concentrated in the hands of five to six retail multiples who control about 70% of the ware market and these multiples have largely consolidated their supply base in potato merchants who, in turn, are mainly serviced by large specialist growers. This has brought about a tighter supply base and provided for greater controls on traceability, quality and food safety.

My Department operates the scheme of investment aid for the development of the potato sector. The current scheme is focused on the seed producers sector. It is aimed at improving the production and marketing infrastructure of seed through investment in equipment and facilities for the production, storage and marketing of seed potatoes.

Brendan Howlin (Wexford, Labour)
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The time allocated for questions has expired but I will allow a brief supplementary from Deputy P. J. Sheehan.

P J Sheehan (Cork South West, Fine Gael)
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The source of all the trouble is the red tape bureaucracy of the Department which is forcing potato growers out of existence. I heard the Minister of State speak about farm markets the other day. I ask him to re-examine the regulations appertaining.

Seán Sherlock (Cork East, Labour)
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What we are seeing is a consolidation of the growers. Many small growers are being squeezed and the Government needs to take action to advocate on behalf of the local producers.

Trevor Sargent (Dublin North, Green Party)
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Deputy Sheehan needs to aim his attention wider than the Department if he is looking to solve the problem. We have been grant aiding——

P J Sheehan (Cork South West, Fine Gael)
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It will wipe out the small man.

Trevor Sargent (Dublin North, Green Party)
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I can give the Deputy the figures but it would take too long. I refer to €2.65 million granted to 80 applicants under the national development programme. I appreciate that Deputy Sherlock is focusing on the fact that smaller growers — it is also, unfortunately, the case with regard to some larger growers — are also finding it difficult to trade. The reason is that the return for the grower is less than one fifth of what the consumer is paying in the supermarket. This is a matter I would love to be able to go out and deal with, but I cannot do so on the basis of various state aid rules. However, I am stating clearly — as I hope will the Deputies — that unless the multiples pay more overall to the grower, it will not be possible for many growers to stay in business. This issue needs to be carried forth from this House from all sides.

P J Sheehan (Cork South West, Fine Gael)
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The Department should reduce the amount of red tape.