asked the Minister for Agriculture and Food in the light of his statement that further rationalisation of milk co-operatives is inevitable the strategy, if any, he now envisages for future investment by individual co-operatives in processing and marketing facilities.

38.

asked the Minister for Agriculture and Food the measures, if any, he intends to take to help avoid job losses in the dairy co-operatives arising from the reduction in the Irish milk quota; and if he will make a statement on the matter.

114.

asked the Minister for Agriculture and Food the way in which his recent statement that further rationalisation of milk co-operatives is inevitable will address the difficulties facing the dairy industry.

I propose to take Questions Nos. 64, 38 and 114 together.

It is widely accepted within the dairy industry that further rationalisation of milk assembly and processing facilities must take place over the coming years. This is inevitable if the industry is to continue to develop, to adapt to changing market requirements to maximise returns to milk producers and to protect the jobs of the workers engaged in the industry. I will continue to ensure that investment aid from national and EC sources will be available to facilitate this process; in that context it is encouraging that FEOGA grants have recently been restored for investment projects in the milk sector.

Investment decisions by individual co-operatives are of course ultimately a matter for themselves to decide. I have, however, been urging the industry to diversify into the manufacture of nonintervention type products in order to maximise employment and added-value following the drop in milk intake which will follow the reduction in quotas. We must reduce our dependence on intervention products and I must commend those progressive co-operatives which have already been most active in developing new markets for consumer products.