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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Import Penetration.

Food imports and domestic production

Summary

The Minister said 1983 food imports of £845 million presented import-substitution opportunities, estimating about £200 million could be replaced by domestic production, but could not quantify the jobs involved. Members pressed for stronger action and more food-industry expertise; the Minister cited an IDA development report, an independent consultant proposal, private-sector opportunities and co-operatives. He identified cereals, vegetables, fruit and animal feed among the main substitutable items.

asked the Minister for Industry, Trade, Commerce and Tourism if he is aware of the serious level of food imports that exists at this time; the considerable job opportunities that are lost because of these imports; and the steps he will take to deal with the matter.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

The Deputy will be aware that the question of food imports has been under serious consideration for some time. It is clear that the level of these imports, which reached £845 million in 1983, should provide opportunities for the provision of jobs and import substitution.

I have been seriously concerned, as indeed has my colleague, the Minister for Agriculture, about the apparent lack of success in supplying the market from home sources. Opportunities for import substitution are constantly studied, and there are several on-going activities relating to efforts to expand the food processing sector.

A number of actions have been undertaken which I feel have clarified the true position in regard to the level of substitution which may be possible. An interdepartmental committee was set up to carry out an in-depth study of imports, based on the 1982 figures. It is interesting to note that this committee concluded that, of the £753 million worth of food imported in 1982, only £200 million worth could reasonably be said to be substitutable. This indicates that the situation in regard to imports, while serious, is not as bad as might be generally believed.

At another level, last January the IDA concluded their study of imports as revealed at retail outlets. This study more or less confirmed the level of substitutability mentioned previously. It also indicated specific areas of opportunity for private enterprise to exploit. The Deputy may be assured that the appropriate financial and other assistance will continue to be made available in respect of viable projects in this area.

An important initiative in the food area which has been undertaken by the Government is the establishment of the Ministers of State Co-ordinating Group on the Food Industry. This group, which consists of the Ministers of State at the Departments of Foreign Affairs, Fisheries and Forestry, Agriculture and Industry, Trade, Commerce and Tourism have been given the task of examining the roles of the various Departments and State agencies involved with industry, with a view to streamlining their activities and maximising their contributions to the development of the industry.

Finally, I would point out that membership of the EC means that we are in a free trade situation. This means that our market is open to imports, but it also entitles us to free access to other EC markets and to the benefits of the Common Agricultural Policy. These have enabled us to export £1,743 million worth of food in 1983, that is, over twice the value of imports to this country.

The Deputy will appreciate that, while efforts will continue to be made to achieve the maximum level of import substitution, we must remember that, if the Governments in our principal export markets pursued a similar strategy, serious difficulties could be caused for our food processing industry, which relies so much on export markets.

Comment on this

That is a very comprehensive reply from the Minister. Would he include in it, if possible, the type of statistics he gave in answer to Question No. 8? That is, the value of the total amount of food imports competing with the home manufactured product and also the number of jobs which could be created?

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

That seems to be a separate question.

Comment on this

He gave that information in answer to Question No. 8, which was a similar type of question.

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

Perhaps it was put that way.

Comment on this

No, it is the same thing. He mentioned 50 per cent, giving 10,000 jobs.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

I cannot indicate the number of jobs, but I have given a clear indication of the value of imports that could be substituted. That is around £200 million. How that would reflect on employment is difficult to ascertain.

Comment on this

Would the Minister agree that the estimated value of competing products would be in the sum of £600 million and that food imports have grown eight-fold in the last eight years? Would he agree that with fruit and vegetable imports totalling £155 million last year, he should be taking some positive steps? I must reiterate what Deputy Reynolds said — it is a pity that the imports substitution unit has been disbanded. Would the Minister agree that the Government have thrown in the towel as far as imports in this area are concerned?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

Really, the Deputy should realise that we are in the EC and that we rely on markets in the EC being open to our products, as well as our products being open to the markets in the EC.

Comment on this

"This entitles us to free access to EC markets" Is the Minister suggesting that there is free access to the French market for all lamb products in this country? Is he suggesting that there is free and unrestricted access to the French markets?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

While I would have some personal historical knowledge of this I would suggest that that question is proper to the Minister for Agriculture.

Comment on this
Joe Walsh Mr. J. Walsh Fianna Fáil

Arising out of the Minister's reply, which was interlaced with comments like "serious consideration for some time", "constantly studied", "ongoing studies", "interdepartmental committees", and ended with a flourish saying that in-depth studies were going on in this area, is one single food technologist employed by the IDA who spent £3 million during 1983 on the development of industry? Will the Minister take some positive steps to reduce the "only £200 million" which he says could be substituted in food imports?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

I am satisfied that the necessary expertise needed by the IDA is available. Indeed, they produced their report in January of 1984 entitled Consumer Foods — Ideas for Development which is primarily identifying areas of import substitution. We are a free trading nation——

Comment on this
Joe Walsh Mr. J. Walsh Fianna Fáil

Nobody is disputing that.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

It is up to the business acumen of the people in this country to grasp the opportunities that are there in relation to food import substitution.

Comment on this
Joe Walsh Mr. J. Walsh Fianna Fáil

What about IDA spending?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

If we want to go on to IDA policies, IDA expenditure on grants is extremely high and I do not think that the Deputy would wish to belittle it.

Comment on this
Joe Walsh Mr. J. Walsh Fianna Fáil

I would think that they would employ a number of food technologists.

Comment on this

Is the Minister satisfied that enough expertise exists already within the institutions? Perhaps he will explain to the House why in the plan Building on Reality they say they are now going to employ an international consultant in the food industry.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

This was a concept that was proposed to the committee — and we welcome it — that we would take an independent consultant with specialised knowledge in the marketing area who would help us in our work of identifying the needs of the food industry and also ensure the maximisation of the use of the resources of Government. The appointment of a consultant would be very helpful to the food committee in reaching a constructive and positive report.

Comment on this

Would the Minister of State agree that the only inescapable conclusion from the answer and the figures he has given is that private enterprise has failed lamentably to cope with this problem and that the only reasonable course forward now would be to call upon the semi-State bodies under his aegis to intervene actively in this field?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

We are a private enterprise country. Many co-operatives are involved in the food industry and I feel that they are tackling the opportunities fairly well. I hope too that the establishment of the NDC will be of assistance in this area over time.

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

I am calling Deputy Foley and Question No. 12.

Comment on this

The Minister of State quoted £200 million as being substitutable at home. What items of food does he include in that figure?

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

I imagine that that is a separate question.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

Perhaps the main items would be cereals, cereal preparations, vegetables, fruit and feeding stuffs for animals and that would constitute nearly three-quarters of the total figure.

Comment on this