Séamus Kirk (Louth, Fianna Fail)
Link to this: Individually | In context

Question 251: To ask the Minister for Agriculture and Food her efforts to assist the horticulture sector in recent years; and her plans for its future development. [9164/07]

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

My Department has contributed to the development of the horticulture 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 2000-2006 aimed to promote the specialisation and diversification of on-farm activities, improvement in the quality of products and to facilitate environmentally friendly practices and improved working conditions on farms. My Department has paid grant aid amounting to some €20m to producers for on farm capital investments under the NDP Scheme for Investment Aid for the Development of Commercial Horticulture. In addition, under the NDP Capital Investment Scheme for the Marketing and Processing of Agricultural Products a total of €18.7m has been awarded to operators in the fruit, vegetable and potato sectors. Taken together, these two schemes have leveraged an investment of over €110m in these sectors so far in the new millennium.

Under the new National Development Plan 2007-2013, it is anticipated that further substantial funding will be provided. This Programme remains to be cleared by the EU Commission and must also fulfil EU State aid criteria. In addition to these two schemes, fruit and vegetable producers benefit from EU aid under the Producer Organisation (PO) scheme. POs provide their members with the opportunity to concentrate marketing, reduce production costs and stabilize prices.

The proposals for reform of the Common Organisation of the market for fruit and vegetables, which were presented to the Agriculture Council on 29 January, identify a strengthening of the role for POs as the core part of the strategy for improving the competitiveness of the fruit and vegetable sector in the future. The proposals include measures for crisis management organized through POs and enhanced aid for measures both within and outside the PO framework to promote consumption of fruit and vegetables, particularly by young people.

Since 2000, twenty Irish POs have benefited from EU funding amounting to €24m. With proposals now on the table for greater flexibility in the EU rules, governing the formation and operation of POs, I hope to see them playing a much greater role in the future in supporting Irish producers of fruit and vegetables.