Ivor Callely (Dublin North Central, Fianna Fail)
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Question 227: To ask the Minister for Agriculture and Food the level of supports for the development and promotion of horticultural production to growers; if she will provide a breakdown of such supports; the regions involved in 2006; and if she will make a statement on the matter. [9192/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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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 €20 million to producers under the NDP Scheme of 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 €18.7 million has been awarded to operators in the fruit, vegetable and potato sectors. Taken together, these two schemes have leveraged an investment of over €110 million in these sectors so far in the new millennium. Both schemes were available to applicants in the BMW (Border, Midlands and West) and SE (South and East) regions.

Under the new National Development Plan 2007-2013, further substantial funding, circa €50 million, has been earmarked for producers. I intend to announce the first phase of this scheme for 2007 as soon as the programme is cleared under the EU rules.

In addition fruit and vegetable producers benefit from EU aid under the Producer Organisation (PO) scheme. POs provide their members 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 €24 million. 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.