Bernard Durkan (Kildare North, Fine Gael)
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Question 144: To ask the Minister for Agriculture and Food her plans for the continued development of the agricultural food sector with particular reference to the need to maintain Ireland's position as a food producing and food exporting nation; and if she will make a statement on the matter. [3685/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Irish food and drink industry has made significant strides over the past decade consolidating itself as the key indigenous industry. The value of exports during 2006 are estimated to have grown by 10% and exceeded €8 billion for the first time.

The landscape in which the industry operates is changing rapidly. All elements of the landscape including policy, the regulatory environment, retail and food service buying-power/configuration, consumption trends, supply structures, and production/processing technology are changing — with the pace of change increasing.

The continued success of the industry in this increasingly complex and dynamic environment will be determined by the ability of its stakeholders, both producers and processors, to anticipate and to respond to market opportunities in an efficient and effective manner. The need for the sector to adapt to the more market oriented policy environment in which it now operates was recognised in the Agri-Vision 2015 Action Plan published early last year and now being implemented.

The National Development Plan 2007-2013 provides significant funding for the continued development of the food industry. Besides the specific food related initiatives, the industry will benefit from the huge investment in transport and other infrastructure, which are key to sustained competitiveness, and to growing the exports. The industry will also have full access to the generic industry supports in the Plan for research, technology, knowledge building, skills and people and will benefit from the increase in funding for food research in the NDP. Department expenditure on food research carried out by Teagasc, the universities and ITs under the Food Institutional Research Measure (FIRM) is set to double to €14 million a year from the €7 million average over 2000-2006.In addition, some €289 million is provided specifically for the food industry for capital investment and marketing.

A capital investment envelope of up to €200 million will underpin huge investment in key areas of the food industry. This includes a core €100 million fund to support investment of €300 million in the dairy sector for which evaluation of proposals is underway; an investment fund of up to €50 million, which will shortly be launched for the beef sector, and funding of projects in other Annex I sectors which have been approved and are due to start.

Some €90 million will be provided for marketing. This includes funding for An Bord Bia for generic promotion, market supports in line with EU rules, promotion of quality and quality assurance. Through its Overseas Office network and its primary focus on market investigation and promotions, Bord Bia is playing a significant role in assisting this development of a market led and sustainably competitive industry.