asked the Minister for Industry and Commerce the steps he proposes to take to help substitute the imports of the considerable amount of frozen chipped potatoes coming into the country.
Ceisteanna—Questions. Oral Answers. - Frozen Chipped Potatoes Imports.
5.
I am keenly aware of the substantial imports of frozen chipped potatoes and of the desirability to substitute, by home production, as much as possible of these imports. These imports are regarded as a major challenge and considerable assistance has been made available to different companies in an effort to create and support competitive home producers of chipped potatoes, capable of making major inroads into imports. The IDA and other agencies are continuing these efforts to foster an Irish production capacity capable of not only significantly displacing imports but of gaining a foothold on export markets.
The Minister spoke about assistance available through the IDA. To date that assistance has not been adequate to encourage a sufficient number of people into the processed vegetable or potato sector.
The Deputy should put a question.
Will the Minister not agree it is time that special measures were taken to rectify the scandalous situation applying in the chip potato and the processed vegetable sector? The assistance available in the past has been patently inadequate to encourage investment and to encourage the building of the necessary plant and facilities for the processing of potatoes.
I have to reject the allegation of the Deputy that the assistance given was inadequate. Quite clearly it was adequate. There is a major problem regarding throughput. There is a dilemma here in relation to the industry. With regard to future developments, the IDA consider the greatest barrier is the cost of Irish potatoes at around £80 per tonne as against £30 per tonne in Holland. This has obvious implications for the industry, particularly in regard to export potential.
It would seem that unless we can produce good quality potatoes for chip manufacturing on a consistent basis and also ensure a consistently high throughput, we will not be able to compete with imports. With the best will in the world, it may be necessary for companies to become involved in joint ventures with foreign companies in order to maximise the potential of this sector.
Will the Minister not agree that the industry has fallen between two stools because responsibility for ware potatoes and fresh vegetables is with the Department of Agriculture while the processed sector is the responsibility of the Minister's Department? Will he not agree there is a great lack of co-ordination in this sector? This was clearly identified by the horticultural development group established by the Minister for Agriculture in 1979. Subsequently they drew up a report on the processed vegetable sector that clearly identified the problem.
The Deputy is now asking questions and answering them.
Will the Minister not agree that because of the split responsibilities there is an inhibition on the development of the industry as a whole?
I am sure the Deputy is aware of the appointment of Deputy Hegarty as Minister of State in the Department of Industry and Commerce. He is already Minister of State in the Department of Agriculture with specific responsibility in the food area. I am answering a question from the industrial point of view as tabled by the Deputy and I am pointing out the commercial difficulties involved. I am also stating quite specifically that the IDA have given substantial grant aid to the companies in the industry.
I will allow Deputy Kirk to ask a final supplementary question.
Will the Minister agree that quite a number of jobs could be created in this area but because of lack of commitment by his Department these jobs are not being created at this time?
The Deputy is making unsubstantiated allegations. They are unfounded and untrue. The IDA have been and are willing to assist industry involved in the frozen chip potato market and any viable project will receive our full attention and support. Quite properly, I have pointed out the difficulties that exist in this industry.
Will the Minister enlighten the House on the progress made with regard to the establishment of a large scale project in the potato chip industry? Will he state the type and variety of the potatoes that will be used in the manufacture of chips in the new plant?
I am not at liberty to discuss any projects that may be the subject of confidential negotiations with the IDA. With regard to the type of potato that would be suitable, I suggest that would be a matter for the Department of Agriculture.
May I ask a final supplementary question?
No. I allowed the Deputy a final supplementary question. I am calling on the Minister to answer Question No. 6.