Food processing and rising imports
Fahey challenged the Minister over food-plant closures and rising imports, seeking urgent, specific action to protect processing. Deasy cited a committee monitoring imports, grants of 50% in the west and 25% elsewhere, and reliance on private enterprise in a free-trade economy. Noonan urged the Department to work with development agencies, citing closures and threatened closures; the Chair ended the exchange without allowing a reply.
asked the Minister for Agriculture if he views with alarm the disintegration of the food industry in Ireland as evidenced by the closure of food processing plants throughout the country, and the increase in food products being imported into the country; and if he will give details of the action he is taking at present to reverse this trend.
Comment on this
I would refer the Deputy to the detailed statements which my Minister of State, Deputy Hegarty, and I made in the House on 3 and 4 May in the course of the debate on the state of the food processing sector. In particular, I wish to emphasise that a major aim of the Government is to create the conditions that will generate greatly increased output at farm level and to encourage increased processing of this output.
I have recently set up a committee to monitor food imports, to establish the precise types and quantities of produce being imported, to identify those items which can be produced at home and to assess the reasons for such imports. As I emphasised previously, the setting up of this committee is not a solution to the problem created by food imports but rather as an aid towards achieving the goal of identifying and assessing the position. The real solution lies in the expansion of our own agricultural production and in updating and improving our production, processing and marketing techniques to a level at least as good as, if not better than, those of our competitors abroad.
Also, my Department are participating in the work of the Sectoral Development Committee who are operating under the aegis of the Department of the Taoiseach. This committee are at present examining the beef and dairying industries with a view to suggesting means of increasing production and diversifying processing operations.
The problems faced by the horticulture industry as a result of imports are of a complex nature and the Horticulture Development Group who have recently been reconstituted are devoting particular attention to the question of meeting import competition in that sector.
I might add that substantial grants are available through my Department and the IDA for projects relating to the processing and marketing of agricultural products, and these include contributions from FEOGA of 50 per cent in the west of Ireland and 25 per cent in other areas.
Comment on this
The Minister has identified the problem clearly, but that is not what my question was. My question was whether he views with alarm the extent of the problem and, secondly, if he will tell us precisely what he proposes to do. It is no use coming into the House and telling us that he is endeavouring to create the environment for an improvement in the processing industry. Could he point out specifically what he is doing now as a matter of urgency in order to strengthen, develop and save from complete fragmentation the processing industry? With regard to the second part of my question what is he doing — other than setting up committees for which we are famous in this country — to stop the desperate cancer — which is what I consider it to be — of the millions of pounds of food products being imported every week? What is he doing in order to solve that problem?
Comment on this
It is people's own initiative that counts in this matter. The Department can only be of assistance. As I have pointed out, we, together with the IDA, are providing 50 per cent grants in the west of Ireland and 25 per cent in the rest of the country.
Comment on this
You have put me on notice that you are going to be out of order and that makes it more difficult for me to ignore it.
Comment on this
I will put by way of question to the Minister that from two comments in the reply he has made today his attitude seems to be that it is up to people's own initiative——
Comment on this
Secondly, the Minister said earlier that people can do it out of their own resources if they wish. Is his attitude that if they do not they can go to hell?
Comment on this
If they do not it is a poor outlook for this country because we are depending on private enterprise. We are in a free trade situation. It is up to us to produce the product and that is what I have outlined in my reply to the question.
Comment on this
(Limerick West): Is the Minister aware that a number of agencies are operating in this country, such as SFADCo and the IDA, who should be initiating areas where development can take place in regard to the processing industry? I am asking the Minister to ask his Department to get in touch with those agencies to see if such processes could be initiated. Is he aware that the approach by his Department is the reverse when one sees the closure of Mattersons in Limerick and the threatened closure of East Cork Foods? Surely that is a step in the wrong direction.
Comment on this
(Limerick West): Will you not allow the Minister to answer my supplementary question?
Comment on this
I have a discretion about how many questions to allow and I have been very reasonable. Uimhir a 6.
Comment on this
(Limerick West): Are you not allowing the Minister to answer my supplementary question? I deplore this attitude.