John Gormley (Dublin South East, Green Party)
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Question 10: To ask the Minister for Agriculture and Food the achievements in establishing a large and thriving organic sector since June 2002; and if she will make a statement on the matter. [9145/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am strongly committed to the development of the organic sector in Ireland. While the total area under organic production is still small by European standards, 2006 was the second year in succession in which the Irish sector showed significant and encouraging growth. Nationally, the total area in conversion or with full organic status rose by 15% in 2005 and by a further 14% in 2006. Currently there are just over 1,270 organic operators and some 40,000 hectares of land under organic production methods. The market is also growing strongly, with the organic retail sector in Ireland estimated to be worth €66 million, compared to €38 million in 2003.

My Department already provides substantial financial supports for organic producers, through the Rural Environment Protection Scheme (REPS) and the Scheme of Grant Aid for the Development of the Organic Sector. Since REPS began in 1994, it has delivered some €43 million to the sector. The draft Rural Development Programme for the period 2007–2013 includes measures designed particularly to encourage development in the organic tillage and horticulture areas. It is proposed, for example, to allow organic farmers to obtain organic support payments without having to be in REPS.

Special investment aid was also available for organic farmers and processors under the Scheme of Grant Aid for the Development of the Organic Sector, which supported investment both on-farm and off-farm. For on-farm investments, grant aid was given for 40% of the cost up to a maximum grant of over €50,000. For off-farm investments, the maximum grant was over €500,000. From 2002 to the end of 2006, my Department had paid a total €1.75m to applicants under this Scheme. While the Scheme closed at the end of December 2006, I propose to introduce a similar Scheme for the 2007–2013 period.

Substantial progress has also been made on the implementation of the recommendations in the Organic Development Committee report, published in 2002.