Phil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context

Question 157: To ask the Minister for Enterprise, Trade and Employment if he has noted the recent job losses in the food manufacturing sector; the proposals he has to ensure that indigenous employment remains competitive; and if he will make a statement on the matter. [37950/06]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The food processing sector is Ireland's single largest indigenous industry. It plays a critical role in the continued growth and success of the Irish economy, contributing an annual output in excess of €18 billion, and direct employment of 54,000. Job losses have been experienced in the food sector in recent times due to a variety of circumstances, including the availability of lower cost imports from third countries. However, despite operating and trading in a very competitive global economy, the Irish food and drinks processing sector continues to exhibit steady growth. In 2005 the sector achieved export sales of €7 billion. Irish food manufacturers are continuing to expand their operations, and invest in research and development and world-class production facilities, in order to remain competitive on the global market. The recent announcement of an investment of €180m by Irish speciality foods company Cuisine de France, is a case in point. The investment will lead to the creation of a 42,600-sq.m purpose built centre of excellence, incorporating an R&D centre and state of the art food manufacturing facility. The facility will lead to the creation of 130 new jobs, 5 of which are specific to Research and Development.

Enterprise Ireland is focused on helping to develop world-class companies by increasing competitiveness through increased productivity and innovation. Particular emphasis is being placed on growing and emerging sectors such as functional foods, ready meals, indulgence or luxury products, as well as products designed to satisfy the health and well-being agenda. Continuous innovation and investment in R&D is directly contributing to export growth in the food sector. The announcement in 2005 of plans to develop facilities such as the Glanbia Group's innovation centre in Kilkenny, as well as the Dairygold Co-operative Society's applied food sciences R&D centre in Mitchelstown, and the announcement this year by Dawn Farm Foods to establish a state of the art meat science centre in Naas, are indicative of the strides being made to establish Ireland to the forefront of food research and innovation.

Earlier this year my colleague Ms Mary Coughlan T.D., Minister for Agriculture and Food, announced a development fund for the dairy sector. The fund is designed to improve efficiency and add value to the dairy industry and will help to further develop a modern, competitive, innovative and market-focused food sector in Ireland. The investment will include some €100 million of Government grant assistance. This scheme will be managed by Enterprise Ireland. Enterprise Ireland will continue to actively encourage its client companies in the food sector to innovate, grow and engage in export markets through a range of support programmes. Enterprise Ireland, together with organisations such as Bord Bia and BIM, will work to help ensure continuing gains in productivity, competitiveness, innovation, sales and exports in the food sector.