Damien English (Meath West, Fine Gael)
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Question 13: To ask the Minister for Agriculture, Fisheries and Food if she will introduce measures to support the sheep sector; and if she will make a statement on the matter. [7066/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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The sheep sector is an important part of the overall agri-food sector and its future depends on its ability to meet the needs of the market. The Sheep Industry Development Strategy Group, which reported in 2006, included representatives from all interested parties including the relevant state bodies and my Department. The Group's report set out a series of recommendations covering areas such as production, research, advice, processing and marketing. The objective is to facilitate the development of a more profitable sheep sector in Ireland covering production, processing and marketing.

I established an implementation Group to see how the recommendations of the Strategy Group could best be implemented and it reported to me last April. Most of the recommendations in the report fall to be implemented by the industry itself and of their nature will take time for their effects to be seen. My Department is providing assistance for breeding, processing facilities, mechanical grading and quality assurance. Other aspects of the Group's report are also being pursued.

Sheep farmers are major beneficiaries of various schemes being operated by my Department. Under REPS 4, a new mixed grazing measure is specifically targeted at sheep and there are definite signs of interest in it among applicants to date under that scheme. Substantial funding of €28m a year has been allocated to fund the new supplementary measure up to 2013. I am keeping this measure under close scrutiny.

I mentioned last May that payment would be made from the National Reserve to certain sheep farmers. I am pleased that individual allocations of the €6m available were commenced last week and payments should begin to issue shortly. This will result in payments of some €42m up to 2013 in the areas concerned.

In addition to the measures being taken at producer and processor level, promotional efforts are very necessary. Bord Bia will continue to organize strategic marketing campaigns in selected European markets. The downward trend in lamb consumption in certain markets presents a real challenge. To address this, Bord Bia is collaborating with its French and British counterparts on a 3 year generic lamb promotion on the hugely important French market to promote lamb to younger consumers. This is a very significant initiative as there is great potential for high quality lamb on this market, which has over the years been an ideal outlet for quality food from Ireland.

Following the decoupling of market supports and the introduction of the Single Farm Payment, it is not possible to provide direct support for production. I believe however that, with the cooperation of all stakeholders and in line with the approach set out above, the sheep sector can continue to make an extremely valuable contribution to the agri-food sector and to the economy as a whole.