Vol. 267 No. 10
asked the Minister for Agriculture and Fisheries if, in view of the fact that assistance from the Guidance Section of FEOGA is in the main available to producers' groups, he has any plans to strengthen such groups as are already established and to encourge their formation in areas where they do not exist at present.
9.
asked the Minister for Agriculture and Fisheries if he has any plans to assist groups of producers of horticultural and agricultural products to increase their efficiency, to rationalise and co-ordinate their marketing and to eliminate unnecessary costs.
A Cheann Comhairle, with your permission, I propose to take Questions Nos. 8 and 9 together.
As the Deputy is aware, the agricultural sector is very largely organised on a co-operative basis and the bulk of our milk, meat and livestock are marketed through co-operatives. The Irish Agricultural Organisation Society has the function of encouraging the spread of the co-operative idea and improving the efficiency of existing societies. My Department is continuing to foster organised marketing and the amalgamation of co-operative creamery societies into rationalised groups which will benefit from economies of large-scale production and diversification.
My Department also operates a scheme of grants for group farming projects designed to encourage farmers to form business groups to help them to achieve greater efficiency in the production and marketing of produce and in the management of their farms. There has been an appreciable increase in interest in this scheme recently. On implementation of the EEC Directive for modernisation of farms recognised groups will be eligible for a launching aid as a contribution to management costs. A draft directive on assistance to farmers in less favoured areas provides for aid to joint investment schemes such as fodder production and land improvement.
The establishment by co-operative societies of large-scale pig breeding and fattening units is being assisted by the payment of substantial grants and the promotion of weaner groups is encouraged by the advisory services.
The Department's horticultural grants scheme makes provision for grant aid for recognised groups of horticultural producers, the development of group activity in the production and marketing of their crops and the investigation and assessment of market outlets. Under the glasshouse grants scheme and the mushroom unit grants scheme legal partnership and co-operative societies are eligible for grants. Grants are also payable to co-operatives for the establishment of grading and packing stations.
Under the EEC regulation on the common organisation of the market in fruit and vegetables financial aid will be available for the formation of producer groups able to provide improved marketing arrangements for the members including procedures for the withdrawal of produce from the market at times of low prices. The provisions of this regulation have been discussed with the interests concerned and a formal scheme to give effect to it is being drawn up.
Similarly, the EEC fishery regulations provide for financial aid for the establishment of producer organisations with the objective of promoting the rational use of fishery resources and the improvement of the marketing of fish and fish products. These organisations also will have the function of operating withdrawal procedures if prices fall below a prescribed level. My Department and the IAOS have been encouraging fishery interests to proceed with the formation of such organisations.
In brief, there is a new interest among farmers in group activity and it is my intention to encourage this in every way possible.
I am very grateful to the Minister for that comprehensive reply. I was particularly concerned with the agricultural advisory service and I would ask the Minister if he would use every opportunity available to him and his Department and that service to draw the attention of everybody in the agricultural and horticultural fields to the increased importance of the producer group from the point of view of the EEC system?
I will certainly do that and, as the Deputy knows, we have been working hard on the dairy industry generally in this regard.
