(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.