asked the Minister for Agriculture given the view of Bord Bainne that the processing sector needs considerable investment this year to maintain plant and equipment in line with competitive activity, the measures he considers appropriate to encourage this investment; and furthermore, if he considers it timely to take steps, in view of the massive amounts of capital involved, to encourage co-operation between cooperatives, a move recently advocated by the Agricultural Institute to foster product diversification.
Written Answers. - Milk Processing Sector Investment.
807.
There is of course, an ongoing need in the milk processing sector for investment in plant and equipment, and my Department and the State agencies concerned actively promote and encourage such investment. This matter is, however, primarily one for the dairy industry itself as indeed, is the issue of product diversification. I am aware that the industry has been examining how best to achieve increased product diversification and I would urge that it should avail itself fully of the grant aid which is available from the Industrial Development Authority. The high priority given by the Government to the development of the food industry and the strategy for the production of added value, consumer-type products are clearly indicated in the national economic plan Building on Reality, 1985-1987.