Bernard Durkan (Kildare North, Fine Gael)
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Question 399: To ask the Minister for Agriculture, Fisheries and Food his plans for the development and expansion of the fruit and vegetable industry here; and if he will make a statement on the matter. [25969/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Under the National Development Plan 2007-2013, substantial funding of circa €50 million has been included to assist producers of fruit and vegetables to upgrade or develop new production facilities. The scheme of investment aid for the commercial horticulture sector will assist capital investment on farms to promote the specialisation and diversification of on-farm activities, improve the quality of products and facilitate environmentally friendly practices and improved working conditions on farms. Commercial enterprises will also be assisted to improve marketing and processing facilities.

In addition, fruit and vegetable producers can benefit from EU aid under the Producer Organisation (PO) scheme. POs provide their members with the opportunity to concentrate marketing, reduce production costs, improve quality and stabilise prices. The strengthening of the role for POs is a core part of the EU strategy for improving the competitiveness of the fruit and vegetable sector in the future. With the more flexible rules adopted by the EU last year governing the formation and operation of POs, I hope to see them playing a much greater future role in supporting Irish producers of fruit and vegetables.

In December 2007 My Department also invited applications from the horticulture sector for funding under the capital investment scheme of aid for the marketing and processing of agricultural products. The closing date for receipt of applications was the 29th of February 2008. Under the Scheme, aid is being provided to assist the development of the fruit and vegetable sector through grant aiding capital investment in buildings and/or new specialised plant and equipment in commercial enterprises involved in the marketing and processing of fruit and vegetable products. A total of 36 eligible applications were received and these applications are undergoing a detailed assessment and evaluation process.