Bernard Durkan (Kildare North, Fine Gael)
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Question 144: To ask the Minister for Agriculture and Food her plans for the expansion of the food industry in the future; and if she will make a statement on the matter. [2291/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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My Department's mission is to lead the sustainable development of a competitive, consumer-focused agri-food sector and to contribute to a vibrant rural economy and society. To that end, the National Development Plan 2000-2006 has set out a detailed strategy for the development of the food industry. The food research, marketing, human resources and investment measures in the plan are market-focussed and designed to provide an integrated response to the challenges facing the food industry in an increasingly globalised and consumer driven environment.

In particular, investment in new product development and innovation is essential for any industry to grow and prosper and this is equally true of the food industry. I am pleased that NDP funding of €10.6 million has been allocated in the Estimates for 2005 for the food institutional research measure, which encourages high quality research across a wide range of food science and disciplines and also funds and facilitates public good research into food by third level institutions and Teagasc. Public good food research has been instrumental in the development of a number of food products. The results of food institutional research measure research and expertise are available to food companies when developing their own in-house research and food safety plans. A further €7 million for 'near-farm' projects has been provided in particular sectors to improve the quality and marketability of produce and just this week, applications have been invited for on-farm grant aid of €3.6 million for the development of the horticulture sector.

Agriculture remains more important to Ireland than most EU member states, contributing substantially to national wealth and employment. Agri-food accounts for nearly 9% of gross domestic product over 9% of our total exports; almost 10% of total employment, and with 50,000 people directly employed in the food industry and some 280,000 employed in food and drink sales, farm output and ancillary services the industry has a unique role in the local economy.

A strong partnership between Government, State bodies and industry has been an essential component of our economic success. The report of the enterprise strategy group has emphasised the importance of marketing, competitiveness and 'agile government'. I have recently returned from a trade mission to China led by the Taoiseach and with the full participation from Bord Bia, Enterprise Ireland and key exporters. An indicator of our strengthening trading relationships was my signing of a pigmeat protocol that will form the basis on which pigmeat products from Ireland will be exported to China. This protocol is underpinned by the high status that the control and supervision of food safety is afforded in Ireland and because of international good standing as a food-exporting nation.

The Agri Vision 2015 Committee report which I launched last month highlighted the interdependence of the agriculture and the food industries. The report recommends that the food processing industry and the agricultural sector 'investigate ways to connect farm production decisions more closely to market demands'. The mid-term review of the Common Agricultural Policy will provide agriculture with a stable and predictable support in the years ahead, enabling the agri-food industry to focus its strategies for expansion on the market and the consumer.