Bernard Durkan (Kildare North, Fine Gael)
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Question 190: To ask the Minister for Agriculture and Food if she is satisfied that Irish food producers are allowed compete for contracts supplying all the major chain-stores; and if she will make a statement on the matter. [7244/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The route to the food market for the Irish food industry is determined by its ability to compete in the marketplace and respond to consumer demand for quality, taste, nutrition and increasingly speciality products. Investment in marketing and market intelligence is crucial to success and on the supply side, world-class management and skills at production, processing and distribution stages is essential. While retailer concentration and central distribution are challenging for suppliers, globalisation of retailing has provided market-entry opportunities in the enlarged EU for Irish companies in a range of products including meat, dairy and beverage sectors. As regards being allowed to compete for contracts supplying the major chain stores, the Competition Authority has statutory responsibility in relation to any possible lack of access or unequal opportunity on the domestic market.

My strategy and that of the State agencies is to underpin the ongoing success of the food sector by facilitating the industry to maintain competitiveness and capacity to meet the demands of the market in terms of quality, convenience, price and product specification. The national development plan contains an indicative public funding allocation of €358 million for the food industry by a series of measures covering capital investment, research, technology and innovation, marketing and promotion and human resources and some €187 million has already been awarded under the various measures. Innovation and new product development are essential if food companies are to maintain competitiveness and market share and the national development plan funding in place is geared to assist the industry to produce what the consumer and the marketplace demands.