Mary White (Carlow-Kilkenny, Green Party)
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Question 94: To ask the Minister for Agriculture, Fisheries and Food if, in view of the announcement of the grant aid scheme for horticulture growers, the scheme will provide real benefits to primary producers and enhance the sector's capacity for import substitution; and if he will make a statement on the matter. [3550/10]

Trevor Sargent (Dublin North, Green Party)
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My Department has contributed significantly to the support of the horticulture industry through its grant aid scheme of investment aid for the development of the commercial horticulture sector under the National Development Plan 2007-2013. The scheme assists capital investment on farms to promote the specialisation and diversification of on-farm activities, improve the quality of products, facilitate environmentally friendly practices and improve working conditions on farms. It has made an immense contribution to the growth and development of the horticulture sector across all areas, including protected crops, field vegetables, nursery crops, mushrooms, soft fruit, apples and beekeeping.

Under the first two rounds of the current scheme, a total of €8 million was paid out to 220 producers in 2008 and 2009, supporting investment of some €20 million. This year I am providing a further grant package of €4 million which will fund projects to the investment value of some €10 million. Under the previous scheme which was operated under the national development plan for 2000-06, grant aid amounting to €18.5 million was paid to 656 producers which supported investment of €53 million.

Michael Creed (Cork North West, Fine Gael)
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Does that included the Dublin-Meath growers?

Trevor Sargent (Dublin North, Green Party)
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It includes the whole country.

Brendan Howlin (Wexford, Labour)
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The Minister of State will continue without being sidetracked by interventions.

Trevor Sargent (Dublin North, Green Party)
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I thank the Leas-Cheann Comhairle for his reminder.

Producers concentrate for the most part on supplying the home market. The EU prohibits supports which are targeted at import substitution. It should also be noted that two sectors of Irish horticulture, in particular, are important sources of foreign revenue. The vast bulk of mushroom production is exported to the UK and almost all non-food horticultural products, for example, nursery stock, cut foliage, bulbs, flowers and Christmas trees are also exported, mainly to the United Kingdom and Northern Ireland. Further aid for the sector is also available under the capital investment scheme for the marketing and processing of agricultural products and, in addition, producers can also benefit from EU aid under the producer organisation scheme.

Ciarán Cuffe (Dún Laoghaire, Green Party)
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It is very important to develop other routes to market for horticultural growers. We depend to an excessive degree on a small number of multinational retailers which can determine the price they want to pay for produce.

Is it possible to take additional measures to address the issue? Proposals have been made to introduce a code of practice or establish a retail ombudsman. I suggest we develop a culture of thriving retail markets. In the past ten or 20 years, retail markets have been essentially killed off. As a councillor in the inner city, I witnessed the closure of the Iveagh Market and the demise of the fish market.

Brendan Howlin (Wexford, Labour)
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The Deputy is supposed to ask questions rather than answer them.

Ciarán Cuffe (Dún Laoghaire, Green Party)
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Can anything be done to help horticulture growers? While I would like to see the development of a thriving market culture, perhaps a code of practice and retail ombudsman would be helpful.

Tom Sheahan (Kerry South, Fine Gael)
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The Green Party is talking to itself.

Trevor Sargent (Dublin North, Green Party)
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The Government has held discussions with the Department of Enterprise, Trade and Employment on the introduction of a code of practice, an issue we discussed in the House on previous occasions. Progress is being made in this regard. Following a period of consultation, the Tánaiste has indicated that she will introduce a voluntary code which will be followed by a statutory code. We all hope progress will be made in this matter to ensure farmers obtain a fair price for their produce.

Deputy Cuffe referred specifically to horticulture and noted a trend which is of major concern to me, namely, the loss of growers to the system arising from their inability to compete and satisfy the supermarkets owing to the scale of their operations. Rather than engage in direct sales or another form of retail, these growers are leaving the sector. My focus, therefore, has been to encourage other routes to market. I have, for instance, introduced a standard for farmers' markets to ensure members of the public can have a credible expectation that farmers will be involved in the markets and they will be local in nature. This matter is being progressed.

Michael Creed (Cork North West, Fine Gael)
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Has the Minister of State had an opportunity to address the broader crisis in the horticulture sector? The potato harvest has been virtually wiped out. This is a critical time for those contemplating setting produce for 2010. Are efforts being made to meet representatives of the sector to discuss establishing a rescue package, whether an Exchequer funded or European Union funded scheme, following the virtual wipe-out of a crop?

While the Minister of State will be most familiar with the problem in the potato sector, it is not the only sector affected. The Minister, Deputy Smith, met representatives of the potato sector recently. We are well past crisis point because the industry will close down if the Department does not introduce an initiative to address the problem.

Trevor Sargent (Dublin North, Green Party)
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While I appreciate that much of the media coverage has focused on the potato crop, I am aware that growers of other crops, including carrot producers, have also been affected. As Deputy Creed noted, the Minister, Deputy Brendan Smith, met a delegation from the Irish Farmers' Association, while I have met individual growers. Both of us are giving serious consideration to the submissions farmers have made and are sympathetic to their case. As of today, a decision has not been reached on the matter but I expect one to be made shortly given that the timeframe is tight.

Since 1980, if not before then, there has been ongoing erosion of the number of growers. This trend has not been helped by the weather, pressures on retail and the sterling differential. The fact that the acreage used for horticulture has not changed belies the reality. I seek to maximise the number of growers as well as the acreage in horticulture.

Seán Sherlock (Cork East, Labour)
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Deputy Cuffe asked a question on the possibility of establishing a code of practice or ombudsman. The second proposal is the wrong approach. Does the Minister of State agree that a code of practice would not be worth the paper it was written on until such time as a legislative mechanism is put in place to ensure primary producers of animals and vegetables are given a fair crack of the whip in terms of securing a fair percentage of the market price for their products?

The Minister of State indicated that 200 producers enjoyed a share of the €8 million provided in grant aid. Will he provide a breakdown of the figure? Do potato growers feature among this coterie of beneficiaries?

Andrew Doyle (Wicklow, Fine Gael)
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Some €23 million was allocated under the pork recall scheme for producers of pork meat that was not of Irish origin. Moreover, some of the initial allocation for the scheme has not been spent. Given that horticulture is also a source of food and is under severe pressure, will the Minister consider diverting this money to the sector?

On a second point-----

Brendan Howlin (Wexford, Labour)
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The Deputy must ask a question.

Andrew Doyle (Wicklow, Fine Gael)
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There is no point referring to an enhanced scheme if the pressure on producers will result in the contraction rather than expansion of horticulture. Market led responses will not resolve the problem.

Trevor Sargent (Dublin North, Green Party)
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I concur with Deputy Sherlock that there is no point in introducing an unenforceable code. The Tánaiste has assured us that while the submissions under consideration will initially result in a voluntary code, it will be placed on a statutory footing. We are moving as quickly as possible towards the position the Deputy advocates. We all wish progress could be made more quickly. The Tánaiste indicated she would like to introduce a code within 24 hours. Unfortunately, this is not practically possible.

Andrew Doyle (Wicklow, Fine Gael)
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A Fine Gael Party Bill is available to the Minister.

Seán Sherlock (Cork East, Labour)
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Is Deputy Cuffe satisfied with the Minister of State's response?

Trevor Sargent (Dublin North, Green Party)
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Potatoes have been included in the grants provided in the past. Under the most recent round of funding, considerable investment was made in storage facilities. This has enabled us to ensure we can maintain an Irish element to potato retail for longer than was previously the case. The grant schemes are highly competitive. Applicants must have a business plan for at least two years, must comply with health and safety and environmental standards and are subject to an inspection by the Department.

Andrew Doyle (Wicklow, Fine Gael)
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The Minister of State did not answer my question on moneys from the pork recall scheme.