asked the Minister for Agriculture and Food if he is satisfied with the level of funding available to the food processing, industry for research and development; and if he will make a statement on the matter.
Ceisteanna—Question. Oral Answers. - Food Processing Industry.
27.
The range of facilities and incentives available to the food industry for research and development is quite considerable. Grants of up to 50 per cent, subject to a maximum of £250,000 per project, are available from the IDA towards the costs of researching and developing new products or manufacturing processes. In addition to these grants, firms who wish to establish their own in-house research and development facilities can also qualify for grant-aid from the IDA towards the capital costs involved, subject to a maximum of £150,000, and up to £15,000 to cover the cost of salaries and travel expenses and to assist companies to undertake studies necessary to identify new markets and new products.
State assistance towards research and development is also available from An Foras Talúntais, IIRS, SFADCo and the universities, especially UCC. All of these research facilities and services are available to the food industry for confidential product and process development.
I am satisfied that the level of funding available to the food industry for product development is adequate. I am disappointed, however, with the industry's response to IDA grants and the State research facilities, especially those at AFT and UCC, which are very much under-utilised. I urge food processing firms to devote more resources to product development and to avail of these incentives and facilities to the maximum extent possible. This is essential for the success of Government policy which is designed to encourage the food industry to move away from commodity products into high quality consumer type products, which have a much greater value-added and employment content.
First, may I congratulate the Minister and his colleagues on their new posts and wish them well. Is the Minister aware of the report by the National Board of Science and Technology, dated 4 March 1987? The report does not appear to agree with the Minister's view that adequate funding is available. Would the Minister confirm that he? agrees with the report?
I am familiar with the report but the reality is that for 1986 only 7 per cent of all research and development grants approved by the IDA were taken up by the food industry. There appears to be a reluctance by that industry to take up the grants and assistance available. As I said, I am disappointed with that because we need to get away from commodity products and on to consumer orientated products which have much greater job potential. The Government are assisting and encouraging the industry to avail of these grants but there are risks involved in new product development and the industry appear to be reluctant to take those risks.
Would the Minister initiate a system so that he could readily identify the areas where there is the greatest scope for import substitution with regard to food processing and perhaps direct special attention towards those areas with regard to availability of funding in the future?
The Government have identified this problem and are devoting all the resources necessary. Recently the IDA increased the level of grant available for product development rather than process development because of the high costs and high risks involved.
That is the end of Question Time today.
May I raise on the Adjournment the acquisition by the State of the Great Blasket Island?
I will communicate with the Deputy.
I put down a Private Notice Question, which was refused, dealing with one of the hidden tragedies in yesterday's budget.
The Deputy may not raise a matter querying a decision I have made on his Private Notice Question.
Written approval has not been——
This is not in order.
There are hundreds, if not thousands, of people in this——
I am calling item No. 9.
I wish to raise this matter on the Adjournment.
I will communicate with the Deputy.