(Limerick West) asked the Minister for Agriculture the plans his Department have for new product development.

12.

(Limerick West) asked the Minister for Agriculture the plans he has to improve the value-added aspect of our agricultural produce.

I propose to take Questions Nos. 11 and 12 together.

There are a range of facilities and incentives available from various State agencies such as An Foras Talúntais, UCC, IIRS, and the IDA for product development and improving the value-added content of agricultural output. It is the policy of my Department to encourage the food industry to avail of these facilities and incentives in order to enable it to diversify away from commodity type products such as butter into consumer type products which have considerably higher value-added and employment content. In addition, Government strategy, as outlined in the national plan, is to encourage the food industry to seek and exploit opportunities for the production of consumer type products and the grant-aiding agencies have been asked to give priority to projects related to such products.

(Limerick West): Does the Minister see a role for Bord Bainne to carry out research into product development? If so, would he consider funding that body from Exchequer funds?

I do not know if the question of funding from the Exchequer arises, because Bord Bainne are a private company. While I am open to correction on this, my information is that when they were a semi-State body their activities were found to be contrary to EC regulations. I know that Bord Bainne have set up a research and development fund. That is a most desirable activity and I hope all the co-operatives will contribute to that fund.

(Limerick West): Apart from the bodies mentioned by the Minister, would he consider motivating Bord Bainne to go into product development? In my opinion they are the organisation best equipped and suited to do this kind of work.

I agree with the Deputy that it does not seem wise that the major processors, that is the co-operatives especially in the milk sector, should duplicate their efforts by going their own way on research programmes. As I have stated here previously, I am concerned that the major research unit which is available at UCC is not being utilised to the full. It is a magnificent facility, it cost an enormous amount of money, much of which was supplied by the State, and it is underutilised. I should like to see rationalisation on the part of the co-operatives in their research and development work.

(Limerick West): I agree with the Minister regarding the desirability of eliminating duplication of effort. In addition to product development would the Minister consider the sale of alternative products? Is he happy that An Bord Bainne are carrying out sufficient research into markets abroad, particularly the North American one?

I believe they are doing a relatively good job. Naturally their capacity for doing the type of work to which the Deputy referred is dependent on the funds made available to them by the industry. The type of funding to which we have just referred constitutes a step in the right direction.

Could the Minister give the House any indication of the element of job potential in the proper development of the value-added aspect of all our agricultural products?

No, I would not be in a position to quantify that.

13.

asked the Minister for Agriculture the beef and dairy processing plants which he visited during his recent tour of the United States of America; if he will report on the overall findings of his visit; if he has any proposals to implement any of these findings in Irish agriculture; and if he will make a statement on the matter.

Whilst in the US I visited three plants engaged in the processing of agricultural produce. These included a dairy plant, a meat plant and a corn milling plant. I was particularly impressed by the wide range of products produced by these plants and by the high levels of productivity per worker achieved in each of them. These are matters which will be of particular relevance in the future development of our agri-food industry. I also visited the offices of Kerry Co-op in Chicago which is developing a significant export trade in dairy products.

In addition, I availed of the opportunity to look at the greyhound industry in the US. Greyhound racing is spreading rapidly throughout the US and I was anxious both to see the facilities including the tote system, which operate there and to explore the possibilities for expanding exports of Irish greyhounds to America.

Could the Minister name the three plants to which he referred, the dairy, meat and corn, that he visited?

I can of course. The dairy plant was Dean Foods in the State of Northern Illinois, the corn plant was CBC International, also situated in Illinois, as is the meat plant, called Swift and Company.

Could the Minister give us any indication, pertaining to the standards operating in these plants, if many of our plants here would be comparable?

I do not think the comparison would be very favourable as far as we are concerned. It was a most illuminating experience to see the high productivity in the plants in question, particularly the dairy plant I visited.

(Limerick West): Would the Minister foresee the possibility of improving our dairy and beef plants as a result of what he saw in the States, in other words, could the Minister convey those opportunities to the plants here?

I have already expressed at some functions I have attended involving the dairying industry my views on the state of the industry in the States. I think the points were well taken and I shall continue to do so. We do not compare very favourably when one sees the level of productivity in comparable plants in the States. It was an eye opener.

(Limerick West): Resulting from his visit would the Minister be prepared to initiate an improvement in the plants concerned here?

It is not for me to do that. These are privately-owned plants. We are all well aware that the dairying industry has taken upon itself an improvement in the levels of productivity. That has been a significant tendency in the last couple of years. At a time when costs have risen so much they have had to look at their rationalisation and productivity levels. It will be a continuing process because definitely we do not compare favourably with plants in other countries, particularly those in the States.

(Limerick West): In view of the fact that the Minister has said we do not compare favourably with plants in the States, surely it is somewhat naive of him not to initiate in his Department some promotional improvement works within our plants?

The organisation of a business is a matter for the industry itself. It is not for the Minister to dictate. As I often point out here, ours is an open economy. But I have made my views known.

(Limerick West): I am not asking the Minister to dictate his views but, in view of the value of our exports of beef and dairy products, if there is an opportunity for increased productivity and efficiency, it is the Minister's Department that should show the way?

I continually stress that very point when I speak on the dairying industry.

(Limerick West): But the Minister must do so more positively.

Would the Minister——

I hope this is not getting into argument.

No, I would not like to argue. Would the Minister clarify the announcement he made about banning bookies from race tracks in this country as a result of his visit to America, say whether he has any plans to go ahead, and how does he see it affecting the Irish greyhound racing industry?

The Deputy should get his facts right. I said that the matter of greater tote involvement should be examined closely. If the Deputy wants a correct report on what I said I think the Greyhound Express carries an accurate one. Some other reports were anything but accurate.

I am calling Question No. 14.

A final supplementary on that one. The Minister mentioned in his initial reply that he saw potential for the export of Irish greyhounds to America. Does he visualise any movement in this direction in the immediate future?

I intend to have talks with Bord na gCon who are the controlling body for our greyhound industry. It would appear from what I learned in the States that our involvement, especially in the breeding stock in the greyhound industry, is not as great as it was some years ago, in other words, the Irish influence in the greyhound industry in the US has diminished rather than increased. That is an unfortunate situation and I shall be discussing that aspect with Bord na gCon.