asked the Minister for Agriculture if he considers the present producer group grant scheme adequate to encourage horticultural producers to market through such groups; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Producer Group Grant Scheme.
17.
The scheme of financial aid for producer groups in the fruit and vegetable sector operates under EC regulations and is the same in all member states. Under it a contribution is made towards the formation and operating costs of the producer group over a period of five years. Some progress has been made in setting up groups in the tomato and apple sectors but the response of the horticultural industry as a whole to the scheme has not been as good as I would have wished. The main obstacle is the traditional tendency of horticultural growers to operate independently. More co-operative effort is required to meet the demands and competition of present day marketing.
The IFA have undertaken steps to promote the development of producer groups among growers and funds have been made available to them for this purpose. ACOT's recently published fiveyear development programme for horticulture places considerable emphasis on the need for growers to organise themselves into producer groups.
Would the Minister agree that there is a need to make it more attractive for people to organise themselves into producer groups instead of their continuing to pursue the individualistic approach that has been the bane of the industry for years?
I would agree that the individualistic approach has been the bane of the industry, but it is very difficult to dissuade successful individuals from becoming involved with new growers especially since some of these individuals have captured for themselves a good slice of the market. However, I am encouraged by the recent move of the IFA to set up a producer group. That group are proving very successful and there are up to 200 growers involved. The group are hoping to cater for the needs at least of one major supplier in the Dublin area.
The three groups benefiting already are the APG Tomato Group, the Fingal Producer Group who are involved in apple production and the Green Ace Group who are involved in the production of apples and tomatoes.
In view of the apparent failure of the producer group scheme, would the Minister consider setting in motion machinery to renegotiate the scheme at EC level?
That is something we could consider. The grants available for producer groups are not insignificant. In terms of percentages, they may look small but in a five year period the levels are 5 per cent for the first two years, 4 per cent for the third year, 3 per cent for the fourth year and 2 per cent for the fifth year in terms of the total produce sold to the co-operative.
18.
(Limerick West) asked the Minister for Agriculture the action he proposes to take concerning a devaluation of the Irish green £; and if he will make a statement on the matter.
The EMS realignment which took place on 6 April resulted in a monetary gap of 3 per cent for the Irish £ and the introduction of an Irish negative MCA of 1½ per cent with effect from 14 April. The negative MCA represents a charge on exports and a subsidy on imports and is designed to offset any imbalance arising from the currency realignment.
The Finance Ministers agreed, as part of the realignment, that changes in the compensatory amounts would not be sought before the end of the current agricultural price-fixing round. At that stage I will, of course, be seeking such a change in our case.
(Limerick West): Will the Minister ensure that the question of the green £ devaluation is not allowed to damage our position in regard to the other drastic Commission proposals now before the Council. In other words, the green £ should not be bartered.
I do not see how that could happen.
(Limerick West): Is the Minister saying then that the green £ devaluation will be a matter on its own.
At the end of the day that will be a matter for the Commission but I do not see how any realignment could effect our negotiations on the other proposals.
(Limerick West): Is the Minister fully aware of the position of Irish farmers who last year suffered a 15 per cent drop in income and who are now affected seriously by the very bad spring and the fodder shortage? Is this not all the more reason for the Minister to press for action now on the green £ devaluation and do so without there being any strings attached?
When the realignments were decided on, the Finance Ministers agreed that there would not be an advantage for any State until price negotiations were concluded. That is the state of play as of now and we do not anticipate there being any change.
(Limerick West): Has the Minister applied for this devaluation?
As I have stated, the matter will not arise until the price negotiations have concluded. That was the agreement when the realignment was decided on by the Finance Ministers.
(Limerick West): That was not my question. At the appropriate time will the Minister apply for this devaluation?
Of course. What else would I do?