Donie Cassidy (Westmeath, Fianna Fail)
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Question 183: To ask the Minister for Agriculture and Food her views on the progress in expanding the horticulture sector here. [6102/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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With annual farm-gate production valued currently at €270 million and retail sales in the order of €650 million, the sector employs some 10,000 people across the production and distribution chain. The key issue that has impacted on the development of the horticulture industry as a whole in recent years is the increased concentration at retail level with the consequent significant change in the supply chain.

My Department, recognising the marketing advantages and challenges of consolidation and scale, has contributed to the development of the industry, particularly through its grant aid schemes under the national development plan. These schemes have been a catalyst for investment and growth and have assisted producers to upgrade or develop new production facilities and have also enabled commercial enterprises to improve marketing and processing facilities.

The scheme to assist capital investment on farms under the national development plan aims to promote the specialisation and diversification of on-farm activities, improve the quality of products and facilitate environmentally friendly practices and improved working conditions on farms. Since 2001 nearly €13 million in grant aid has been paid to horticultural producers throughout the country to support investments to the value of €38 million. In 2006 a further €5.5 million grant package will fund projects to the investment value of €16 million. My Department has received 174 applications which are being examined. It is planned to issue approvals to successful applicants by the end of March. All areas of horticulture are eligible for the scheme.

Demand in the consumer and food service sectors is buoyant, both for fresh and prepared chilled produce and convenient value added products. The retail value of prepared horticultural produce was estimated to be €59.8 million in 2004, representing a twofold increase on 2001 and there are real investment opportunities and challenges for development of this sector.

Under my Department's capital investment scheme for the marketing and processing of agricultural products, a total of €4.41 million has been awarded under the NDP to date in respect of 19 projects in the fruit and vegetable sector. Further awards will be made in the near future in respect of the call for proposals which issued in autumn 2005. In addition, horticulture producers benefit from EU aid under the producer organisation scheme. A sum of €5.6 million was paid to ten recognised producer organisations in 2005. The development of producer organisations under EU regulations has made an important contribution to the development of the sector as it enables producers to benefit from their combined strength in the production and marketing of their product.

Donie Cassidy (Westmeath, Fianna Fail)
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Question 184: To ask the Minister for Agriculture and Food her views on the assistance available to the seed potato sector; her plans for the sector; and if she will make a statement on the matter. [6103/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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In August 2005, I announced a grant aid programme for the development of the seed potato sector. The programme, which comes under the national development plan, funds capital investment projects for specialised seed production in 2005-06. A grant rate of 35% applies under the scheme. The main objective of the scheme is to improve the marketing infrastructure of the seed potato sector by providing grant assistance to producers towards the capital costs of equipment and facilities for the production, storage and marketing of seed potatoes. My main aim is to develop a competitive seed sector with strong linkages with ware growers to ensure that the €100 million potato industry continues to grow to its full potential.

To date 18 applications have been received and 14 approvals for investment under this scheme have been issued, amounting to €767,000. A total of €1 million has been provided for this scheme in the current year.