asked the Minister for Industry and Commerce if he will give details of the Government's proposals to develop the food and drink industry; and the steps which are being taken to develop new products and markets.
Ceisteanna—Questions Oral Answers. - Food and Drink Industry.
9.
(Limerick East): The Government are committed to encouraging the full exploitation of the country's natural resources particularly through the development of the food and drink industry. The future of the industry can best be served by expansion and diversification into value-added consumer-ready products in accordance with the strategy outlined in the White Paper on Industrial Policy and the national plan. The IDA have drawn up strategies for each of the principal sub-sectors of the food industry. The development of new products and markets are primary objectives of these strategies and some of the means of achieving the objectives are by encouraging joint ventures and licensing and technology agreements. In addition to the IDA, the Deputy will be aware that there is also a wide range of facilities and incentives available from agencies such as CTT, CBF, Bord Bainne, BIM, IIRS and SFADCo, to enable the industry move in this direction.
In view of the strategic importance which the Government attach to this industry, the Taoiseach recently announced the appointment of Deputy Hegarty as Minister of State in both the Departments of Agriculture and Industry and Commerce with special responsibility for food.
The Minister of State has established a food committee comprising relevant Departments and State agencies involved in the food area. The principal aim of the committee, which held their first meeting in May, is to promote a fully co-ordinated approach towards the development of the food sector though better co-operation and-or co-ordination between the agencies concerned and to consider how they can contribute more effectively to advancement of the sector.
The Deputy will appreciate that, while the State will continue to do everything possible to assist the industry, its health and future are dependent largely on initiatives deriving form the industry itself.
Could the Minister supply statistics in relation to the total value of food exports under the two headings mentioned in the question for 1985 and the total value of food imports for the same period?
(Limerick East): I do not have that information but I remember seeing a statistic recently which suggested that the agricultural sector, in terms of primary and processed products, are exporting goods to the value of £2 billion. Most of it is in commodity form or in primary processed stages. There is very little secondary processing and added value in that respect. I do not have a figure in relation to imports.
Perhaps the Minister would let me have that figure in due course.
(Limerick East): Yes, I will send it on to the Deputy.
Is the Minister aware that food and drink exports accounted for 34 per cent of our total exports in 1973 and that they reduced to 24 per cent of our total exports in 1983? I do not have figures for a later period. Does the Minister also agree that a 10 per cent reduction in that period indicates that there is something seriously wrong with this sector? I am trying to establish what the Minister proposes to do to bring us back to the position which obtained in 1973.
(Limerick East): I do not agree with the Deputy as the volume of food exports has increased during that period. As a percentage of total exports it has decreased principally because of the success of the manufacturing industry, especially in the hi-tech and pharmaceutical areas which account for an enormous amount of exports. The manufacturing industry have overtaken agriculture as the lead exporter over that period. That is not to say that the volume of exports has gone down; on the contrary, it has probably gone up quite significantly over that period.
Does the Minister agree the low investment in new product development, together with an over-dependence on meat products and meat based industries, has resulted in a loss in so far as our percentage of total exports is concerned? I should like the Minister to bring to the attention of his task force the need to do something immediately in this area because, while he may not have importation figures available, I put it to him that about £800 million worth of food was imported last year although half of it could have produced locally. I ask the Minister to convey to the task force that that borders on a national scandal for an agricultural country.
(Limerick East): I do not agree with the Deputy's remarks in relation to exports but obviously we should like to see developments taking place in the food industry, for instance, more research and development and a movement towards secondary processing and greater added value. Any housewife will tell you if you walk through a delicatessen or the deep freeze area in the supermarket you could identify many imported products which we should be able to produce at home.
The second problem which also needs to be tackled is the problem of standards and Irish plant complying with international hygiene and veterinary standards. A strategy has been developed now. We are asking the committee to co-ordinate this strategy as it is being implemented by the different agencies.
Despite the task force that has been set up and all the talk in this House about import substitution, would the Minister agree that it is very disappointing after all the effort to find that in June 1985 imports have only been reduced by a mere 1 per cent?
We have the finest raw material in the world in the food area. The strategy has to be to add as much value as possible to that for its export. That is where the problem is. We are in a market of 320 million people. The situation is not bad in Germany, Holland, France and the UK. If we can sell into their domestic markets obviously they can sell into our domestic market. We are not going to eliminate food imports. We can certainly substitute for imports and export a lot more in the coming years if we get the strategy right. The other problem is that all the primary products — beef, milk, cereals — are in surplus now in Europe and to maintain our share of the market and get the maximum benefit we have to go for added value and sell more than our competitors.
Will the Minister agree that, since with all the effort we have only reduced imports by 1 per cent, the programme needs to be re-examined?
There is a re-examination going on now. But the basic strategies are there. The country has been enormously successful, for example, in the beef area. It has not been so successful in the dairying area.
Will the Minister indicate employment trends in this sector? Can he say in particular what employment is today in that sector compared to four or five years ago?
That is a separate question.
I have not got that information. It is a separate question. I will get the information for the Deputy.