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Dáil
‹ Ceisteanna — Questions. Oral Answers. - Poultry Processing Industry.

Poultry processing industry development

Summary

The Minister said EEC rules limit national aid, while IDA and FEOGA support and access to lower-priced wheat could help the industry compete. He agreed to consider leasing the closed Mellowes Agricultural College poultry unit to private enterprise, but could not provide the date or expected response for the FEOGA programme; he undertook to supply the date. Members also raised feed costs and cross-border price imbalances, before the Chair ruled a final comment argumentative.

Mr. Leonard

asked the Minister for Agriculture if he has noted the constraints on the development of the poultry processing industry as indicated in the IDA report A strategy for the development of the agricultural processing industry in Ireland; and, if so, the action he proposes to take to put the industry in a more competitive position.

Comment on this

Under EEC rules national aids for the production and trade in poultry are prohibited. The scope for action by the Government in this area is therefore very limited. Aid for processing firms is, however, available through the IDA and the FEOGA guidance grants scheme and the industry here has been encouraged to avail of this. Under the latter scheme Ireland has submitted to the EEC Commission a national programme for FEOGA aid for the poultry processing industry covering a period of three years to help to put it on a better competitive basis. While my Department will continue to do all it can to help poultry production and processing, in the final analysis, however, responsibility for improving competitiveness rests with the industry itself.

Comment on this
Mr. Leonard

About 25 per cent of poultry meat is imported. Does the Minister accept that the industry has potential for a greater contribution to GNP? Would he further agree that urgent counteraction is needed to offset the inroads made by foreign producers into the Irish market? Feedstuffs account for 70 per cent of total production costs and this is what is doing the real damage. We do not seem to be able to meet that as they do in Northern Ireland and England.

Comment on this

I agree with the Deputy that feedstuffs are lower in Northern Ireland. That is a problem. We have been approached by the poultry industry recently regarding the availability of low priced wheat in order to help the industry. Everything is being done to ensure that the wheat is made available quickly.

Comment on this

Is the Minister aware that his Department recently closed down the poultry unit at Mellowes Agricultural College, Athenry? In view of the massive investment of public funds made in this unit over the years would he consider leasing this outstanding unit to private enterprise who are interested in developing it? It would help the poultry industry and help to combat imports.

Comment on this

I will consider that.

Comment on this

(Limerick West): When was the scheme for the poultry industry submitted to the EEC and when does the Minister hope to have a response?

Comment on this

It was submitted almost forthwith. It is hoped we will have the feed available within a matter of weeks.

Comment on this

(Limerick West): I am talking about the application the Minister made for EEC funds to aid the poultry industry. I want to know the date when the scheme was submitted.

Comment on this

What I said was that the only aid for the poultry industry we had looked for was our share of intervention wheat.

Comment on this

(Limerick West): In his reply the Minister mentioned that he had submitted a scheme.

Comment on this

We submitted a national programme for FEOGA aid for the poultry processing industry to the Commission. That is a three-year one.

Comment on this

(Limerick West): When was that submitted and how soon does the Minister expect to have a response?

Comment on this

I do not have that information.

Comment on this

(Limerick West): Perhaps the Minister would let me have it?

Comment on this

I will.

Comment on this
Mr. Leonard

Would the Minister agree that not only the poultry industry but the milling industry is suffering due to the imbalance in prices on both sides of the Border?

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

The Deputy is drawing conclusions and bordering on argument.

Comment on this