Noel Coonan (Fine Gael)

I welcome the Minister to the House. I am pleased to have an opportunity to debate the Bill, although I do not support its broad tenet, the amalgamation of An Bord Glas with Bord Bia. An Bord Glas is involved in a distinctive niche area of food development and I am concerned that this important work will lose its effectiveness if it is subsumed within the broader remit of the larger Bord Bia. The Government has approved the amalgamation of Bord Bia and An Bord Glas. It is intended that An Bord Glas will be dissolved and its functions will be transferred to Bord Bia.

It is fitting to begin this debate on the legislation by setting out the ever-increasing importance of the horticulture sector to the economy. The Minister stated that in 2002 the value of the horticultural market to the economy was €2.3 billion, of which the fresh produce market accounted for €1.9 billion. This is recognised as a dynamic and growing market and its success is to be commended.

Since its establishment almost ten years ago, the work of An Bord Glas in developing and promoting the horticulture industry has been successful. It has played an important role in predicting future trends facing the horticulture sector in an era of rapid industrial and consumer changes. This is a critical aspect of the work of An Bord Glas. In its recent annual report, An Bord Glas pinpointed the tremendous changes which face horticulture in the coming decade. Such trends include the tendency of Irish people to eat out more and also to order more take-away food. Increasing competition faces traditional elements of the staple Irish diet, particularly potatoes and vegetables as non-traditional foodstuffs such as rice and pasta become more popular. The demand for pre-prepared organic produce has increased due to growing concerns and awareness among people of food-related health issues and food safety. The avian flu epidemic in Thailand is a current cause of concern.

These changes present a monumental challenge to the horticulture sector. Producers and wholesalers alike need advice and assistance to meet these challenges. To date, the sector has risen to the challenge of new market demands. In 2002 growth in the sales of prepared, chilled horticulture produce increased by 20%. An Bord Glas has done Trojan work to assist and develop this new growth sector. An Bord Glas has done an excellent job in providing the necessary back-up and support services to the horticulture sector and I am concerned that this support system continues and develops in the years ahead.

The founding principle of An Bord Glas was to maximise the contribution of horticulture to the economy, the environment and to the health and well-being of our citizens by ensuring quality produce and services from the horticulture sector. The work of An Bord Glas includes developing, promoting, encouraging, co-ordinating and assisting the production, marketing and consumption of domestic fruit and vegetables. An Bord Glas has already played an important role in gathering and distributing crucial market information for the benefit of horticulture producers. This has taken the form of a variety of duties, from carrying out surveys, doing market research and undertaking publicity and promotional campaigns to advance the horticulture sector.

An Bord Glas has closely co-ordinated its work programme to co-operate with other State organisations, in particular with Teagasc. This has resulted in the establishment and enforcement of highly successful, grading and quality standards for horticultural produce and the formulation and enactment of policy to inform and direct State investment in horticulture. A further key aspect of the work carried out by An Bord Glas has been in the area of the educational curriculum and programmes of higher education. In 2002 significant links were established with many third level institutions, particularly UCD.

The Minister informed us that no significant financial implications arise from the Bill. However, in order to understand the rationale for this amalgamation, will he indicate what financial savings will result from the amalgamation? The amalgamation is part of a wider trend of cutbacks and reductions in funding for State bodies which provide crucial support services to the agriculture and horticulture sectors. In this context I refer, in particular, to the State advisory body, Teagasc. In budget 2003, funding for Teagasc was cut by €15 million; in budget 2004, its funding was again cut by €5 million and several advisory offices throughout the State face closure. All aspects of the agriculture sector face tremendous changes. Well-founded fears exist among the farming community that their livelihoods are in danger and that many will have to get out of farming and horticulture. The Government is responding to the concerns of farmers by making cuts and reducing services.

An Bord Glas is in danger of losing its distinctive role and focus once it is merged with the wider entity of Bord Bia. An Bord Glas can currently stand alone, gain greater attention for its niche area of concern and push for necessary funding, which it views as essential to support, develop and promote the horticulture sector in Ireland. This Bill does not give the necessary guarantees that An Bord Glas will not lose its relevance and the impact it makes on behalf of the horticulture sector once it is amalgamated into Bord Bia. It is a pity to see An Bord Glas being subsumed and merged into the superbody.

I note the Bill contains guarantees for the staff currently employed by An Bord Glas, which is to be welcomed. The Bill contains a proposal to appoint a subsidiary board and I hope it will contain a balanced membership who shall represent the industry in its entirety, and that they are knowledgeable of the industry and not merely political fodder.

A strong identity for Irish horticulture is required to percolate into the marketplace and the continuation of the excellent endeavours of An Bord Glas in terms of quality and standard enhancement is of vital importance. The section that refers to the constitution of the board calls for "persons having knowledge or experience of (a) the food industry or horticulture; (b) consumer requirements". I am worried about the term "food industry" in case members would be drawn from non-horticulture disciplines and not give the horticulture industry its rightful voice. Could a member of a food giant, with no knowledge or sensitivity to the industry, be appointed to the board?

I am totally opposed to the dismantling of An Bord Glas and integrating it into Bord Bia; it is a retrograde step and the loss of a dedicated body for a growing industry must be both condemned and regretted. The track record of An Bord Glas and its staff has been excellent and their dedication and professionalism must be commended. If and when the amalgamation proceeds, I hope a strong and clearly identified voice shall exist on the board to speak strongly for the future of the horticulture industry and that it is not subsumed into non-horticulture duties within a larger and more diverse board.

I am far from convinced of the necessity of this amalgamation. If the funding and staffing levels are to remain the same, I do not see the logic for this decision. I am convinced of the good work An Bord Glas has carried out on behalf of the horticulture sector, a view shared by those I have spoken to in the horticulture sector. To continue these good efforts, An Bord Glas must continue to operate as a stand-alone entity. I do not support this amalgamation. Why fix it if it is not broken?