asked the Minister for Agriculture and Food the total yearly value of processed foods imported into Ireland since 1977; the various food categories involved; and whether any or all of these foods could be processed within the State.

The information requested in the first part of the question is set out in the form of a tabular statement which I propose to circulate in the Official Report. It has been estimated that approximately 25 per cent of processed food imports could be produced in Ireland.

Following is the statement:

Imports of Processed Foods and the Various Food Categories Involved

Source: CSO.

Has the Minister any idea as to the value of that 25 per cent, and has he any plans within his Department to develop the processing market?

The main substitutable imports are: meat, £58.5 million, vegetables £45 million, breakfast cereals £28 million, biscuits, pastry and cakes, £39 million and sugar, £19 million. That relates to the area of processed foods which can be substituted for here at home. The overall processed food import bill for 1986 was £508 million.

In view of the magnitude of the market would the Minister agree that it is imperative that his Department should consider drawing up specific proposals whereby producers or processors in this country could make their way into that market and compete, obviating the need for such imports?

The Department of Agriculture and Food have already taken steps in this regard by expanding the focus of the Department to that of Agriculture and Food. The Government have established an office of food and an office of horticulture to give greater impetus to development in those areas and they have increased levels of grant-aid for food processing plants so that we can compete with imports. Hopefully we will reduce that import bill in a relatively short time.

Can the Minister clarify whether his Department will deal directly with prospective processors or will this be done through the IDA?

This will be done through the IDA.

Is the Minister satisfied with the response potential processors have had in the past from the IDA?

The IDA Natural Resources Division are doing an extremely effective job in this area. If there has been a lack of response up to now it could be argued that it was from the industry side. Very attractive grant-aids were made available over the past few years particularly in relation to research and development. Regrettably the industry did not avail to a sufficient extent of the grant-aid available.

In relation to the setting up of the office of food, could the Minister indicate whether as yet a budget has been allocated to fund the office and if so how much is the budget?

The office of food have no difficulty in relation to their budget allocation. There is an adequate allocation for the Department of Agriculture and Food and out of the overall allocation the office of food have sufficient funds and personnel and sufficient motivation to make a significant impact in this area.

While encouraging the Minister in every way——

There is a question on the Order Paper today on that subject matter.

——I would suggest that the office of food without any budget is a bit like a pub with no beer. The Minister should prevail upon his colleagues to allocate sufficient funds from the overall vote to enable him implement the plans of which he has spoken. I do not see the Minister having any possibility of implementing those plans without having some fire power.

I advise Deputies that there is a specific question on this subject matter. Question No. 17 deals specifically with resources available to the Department. Deputy McCoy.

Do I understand from the Minister that there were £19 million worth of substitutable products in the sugar/confectionery area? If that is so I suggest that those manufacturing products based on sugar as a raw material are at a distinct disadvantage vis-à-vis imports, due to the cost of sugar here as a raw material ingredient for food processors. To give manufacturers here a fair crack of the whip we might be able to apply MCAs to imported products with a sugar content which have free market access now and which come from an area where there are far cheaper raw materials due to the MCAs and other considerations.

I have already had discussions with the trade in that regard and this highlights the matter of funding. There are technicalities to improve the situation here, and the MCA in relation to sugar and sugar products is one. I am working in that area to see that the Irish sugar industry is not at a disadvantage in relation to competitor imports.

It also relates to meat products——

Deputy Michael Higgins.

——and not just sugar products, and to many other products. We are asking Irish industry to be import substitution conscious——

Deputy McCoy is not asking a question. Deputy Michael Higgins.

Arising from the Minister's reference to import substitution and his figure for the import substitution proportion of those products as being worth £580 million, what talks has he or the Minister for Agriculture and Food had with representative producer groups in recent times, or with representative retailer groups, and what were the results of such talks? Are there any grounds for optimism in the face of the possibility of a scandalous loss of jobs?

I am delighted to inform the Deputy that I have had discussions with people at all levels in all sections of the industry. I am convinced that within a relatively short space of time we will be able to make a substantial impact on the money expended on imported goods.

At the retailers?

Yes.

While accepting that the IDA have done a good job in promoting industrial expansion, would the Minister consider, in view of the magnitude of the market to which we have referred, taking into his Department responsibility for vetting applicants for processing grants? Does he consider that it might be advisable to have that area of administration in his Department, in view of the emphasis being laid on the food industry?

It is the function of the IDA to vet applications for grant aid, but there is a change in relation to the natural resources division of the IDA which is now working in concert with the office of Food and replying directly to them rather than as formerly reporting to the Department of Industry and Commerce.

Will it be under the direction of the Minister?

Yes.

What role does the Minister envisage for the Irish Sugar Company in the development of the food industry, especially in view of the recent decision of the company to sell their shares in Mallow Food to an English-based company?

That would seem to be a widening of the scope of the question or perhaps a separate question.

I will be satisfied with a reply outlining the role the Minister envisages for the Irish Sugar Company in the food industry.

The Deputy can be assured that the Irish Sugar Company will play a useful and significant role in the development of the food industry, particularly in the area of sugar processing. In its present more streamlined form it can do that more adequately over the next few years than was perhaps the case in the past.