Michael McCarthy (Cork South West, Labour)
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Question 195: To ask the Minister for Agriculture, Food and the Marine the manner in which budget 2012 supported the agricultural export sector; the supports that are available in this context; and if he will make a statement on the matter. [2872/12]

Simon Coveney (Cork South Central, Fine Gael)
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Despite the on-going serious constraints in the public finances, Budget 2012 was a strong statement of support for the agrifood sector and recognition of the contribution which this export sector can make to economic recovery and future growth in the Irish economy.

The taxation measures announced in Budget 2012 reflect this Government's commitment to the agrifood industry and in particular to the expansion planned in the Food Harvest 2020 strategy, which includes a target of €12 billion for agrifood exports in 2020, a 42% increase compared to the 2007-2009 average. Specifically Budget 2012 includes supports which will help agrifood businesses to innovate and export, including improvements to the Research and Development tax credit; and a Foreign Earnings Deduction to apply where an individual spends 60 days a year developing markets for Ireland in the BRICS countries (Brazil, Russia, India, China and South Africa).

In addition, the Budget includes a new tax incentive for farm partnerships; a reduction in the rate of stamp duty on agricultural land; and restructuring of Capital Gains Tax retirement relief. As these measures have been designed specifically to encourage farming as a career for young people and to incentivise farm partnerships and greater productivity at farm level, I feel confident that the recent budgetary measures will help ensure that the Food Harvest 2020 targets are achieved or indeed exceeded.

More generally, the Budget provides support for marketing of food, drink, seafood and horticulture through the Grant-in-Aid in for Bord Bia. On the trade fair side alone, Bord Bia will participate at a number of key trade fairs in 2012 including SIAL China, Gulf Food, SIAL Paris, Speciality and Fine Food Fair, London, European Seafood Exposition and Fruit Logistica. Bord Bia Marketplace International 2012 will give over 170 Irish branded and private label suppliers opportunities to have pre-scheduled meetings with over 300 international buyers and 100 local food and beverage buyers and to meet over 170 Irish branded and private label suppliers in 3,500 pre-scheduled meetings. Bord Bia will also operate a range of research, information and promotion services based on deep understanding of markets and buyer and consumer requirements, specialised services for small business and programmes involving graduates working with food companies together with working closely with food producers and companies on co-operation projects to help companies achieve advantages of scale.

The Budget also includes further Department funding for Bord Bia to demonstrate the sustainability credentials of our grassland production systems in and through Quality Assurance systems the sustainability credentials. This is a major strength and differentiating factor for Ireland.

In addition, funding for companies under the food competitiveness fund operated by Enterprise Ireland with funding from my Department will support companies in improving competitiveness through application of lean manufacturing techniques and leadership for growth programmes.