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

Question 104: To ask the Minister for Agriculture and Food her position on the restructuring of the dairy industry; and if she will make a statement on the matter. [40476/06]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

I announced a Dairy Investment Processing Fund earlier this year. The Fund, amounting to €100 million of Government grant assistance will generate total Capital investment of €300 million over three years. The objective of the Fund is to support Capital Investment related to the processing of Annex 1 dairy products.

My main motivation in launching the Fund was in recognition of the critical and urgent need to significantly improve the efficiency and cost competitiveness of the Irish Dairy processing sector. The Prospectus Report published in 2003 highlighted the structural deficiencies in an industry that has to compete in international markets against much larger enterprises that are increasing scale at a faster rate than in Ireland. I am confident that the Fund will stimulate the necessary investment to ensure the long term competitiveness and viability of the dairy industry in Ireland.

Enterprise Ireland will manage and implement the Fund. The closing date for applications was Thursday 23 November and I have been informed by Enterprise Ireland that the Fund was over subscribed. Enterprise Ireland will play a key role, together with my Department, in the evaluation of the suitability of investment projects submitted for grant assistance.

At producer level I also introduced a new Milk Quota Trading System which will create a more open market system of transferring quota. The new system will allow farmers much greater freedom to make choices about how milk quota should be transferred, affording them far greater scope to decide the volume and price of quota they wish to buy and sell.