asked the Minister for Industry, Trade, Commerce and Tourism if he will give details of food imports into this country in 1984; if he will give a breakdown of these; and the steps he proposes to take to reduce these imports.
Written Answers. - Food Imports.
30.
According to the Central Statistics Office, the value of food imports into this country in 1984 was £933 million. I shall arrange to send a breakdown of these figures to the Deputy. However, some of the more significant imports are (i) cereal and cereal preparations (£174 million), (ii) vegetables and fruit (£173 million), and (iii) animal feedstuffs (£141 million).
The Deputy will appreciate that any interpretation of these figures would need to be tempered with the realisation that some of our food imports represent "paper transactions", e.g., in the case of live animals for trans-shipment to other countries, or cattle for slaughter and re-export as beef. Also, a considerable volume of other goods is imported for further processing and re-export.
On the issue of import substitution, studies in the past would suggest that approximately 25 per cent of food imports are substitutable. I hope that the Deputy will appreciate that Ireland is now operating in an international free trade environment and that a certain level of imports is inevitable having regard to the multiplicity of consumer needs and wants in the marketplace. Irish industry can best perform, not by any outmoded protectionist measures, but by increasing exports and identifying and satisfying niches on the domestic market.
The Government's White Paper on industrial policy highlights the vital importance of the food sector and it indicates a number of ways in which the above objectives can be achieved by industry. It is important, for instance, that food exports be increasingly based on needs of the marketplace and on branded consumer-ready products, rather than on commodities. The White Paper also urges a much heavier emphasis on product and brand development.
Long term supply contracts are particularly necessary because seasonality of production can be a serious problem in the major food processing sectors. The Government proposes that the National Development Corporation will be empowered to assist in the promotion of ways in which to tackle this problem.
The Government's White Paper indicates also that the large supermarket groups can assist the processing sector by engaging in development-type contracts with local producers and processors, and that they can also help Irish firms to develop export markets through the links between the Irish branches and the head offices of foreign based multiple groups. The importance of this has been urged by the Minister on the supermarket groups through a series of high level meetings.
The Deputy will be interested to learn of some other measures which have been taken recently to place the domestic industry on a more competitive footing vis-à-vis imports. One such measure is the granting of aid to firms involved in the grading, packing and storage of potatoes, which should result in a better quality product. The Government is anxious that links between vegetable growers and market outlets be improved and, to this end, following discussions with representatives of the farming community, a recently formed company, whose main objective is to effect improvements in this area, has been launched.
The Government will be providing financial assistance to this company over a limited period. On the processing side the IDA have approved grant aid for a number of value added projects which should result in import substitution. The Deputy will appreciate that everything possible is being done to help domestic industry compete with imports but, in the final analysis, the opportunities in the marketplace will have to be availed of by the industry itself.