asked the Minister for Agriculture and Food if marketing is to be the key to a new approach to the development of the food industry; if a more unified approach from the State-sponsored bodies is required; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Food Industry Development.
63.
The future development of the food sector will require a much greater emphasis on marketing to enable the industry to adapt to the changing pattern of consumer demand. This will entail not only a firm commitment to and a substantial investment in marketing, but also considerable attention to product development, quality and presentation.
The establishment of the office of the food industry and the transfer of food functions from the Department of Industry and Commerce to my Department will facilitate a more unified approach by the State agencies to the development of the food industry as a whole.
While I accept what the Minister has said it was not exactly the intention of the priority question. The question was whether the Minister accepts that a more unified approach to marketing is now required. In his Estimate speech recently, the Minister said he had set up a working party of members of the farming organisations and of his own Department but would he not accept that despite the stated ambition of his party to have a market driven industry there seems to be no marketing input into this working party so far at national economic recovery is concerned. Can the Minister hear me?
I am sorry, I was not listening because the question is being dealt with by my colleague, the Minister of State. It is not for me to reply to the supplementaries.
Would the Minister agree that there is enormous duplication in the activities of State-sponsored bodies in the key areas of marketing and promotion and that a more unified and coherent approach is necessary; also in view of the diminishing role of intervention in beef and dairy products and of the emergence of marketing organisations within the larger food processors embracing many continents——
This is a very long question.
I will try to cut it short. Would the Minister not consider that the time is now ripe for a review of organisations such as Bord Bainne, CTT, BIM and CBF, not to talk of Bord na gCapall or Bord Glas.
This is a Second Stage speech.
Please, Deputy McCoy.
We are getting a response already from industry for the new strategy of the Department of Agriculture and Food in relation to marketing and product development. It is fair to say that an impact is being made and industry is responding to the new climate. We are constantly encouraging industry to avail of the State facilities and incentives available for development in the food industry in order to enable them to diversify into value-added consumer products. Deputies who were in the House earlier got an indication of the kind of development which is taking place. I welcome that development very much.
In addition, Government strategy for the food industry is to encourage the sector to seek out and exploit opportunities for the production of consumer-type products and the grant aiding agencies have been asked to give priority to projects related to such products. Furthermore because of the importance which the Government attach to marketing the appraisal of investment proposals put forward for State aid by manufacturers includes an assessment of their marketing arrangements. Aid to investment is conditional on those arrangements being adequate. There is an emphasis on marketing. The State agencies are regularly monitored for their performance in relation to their ability to market Irish food. The industry is encouraged to develop consumer-type and consumer-ready products manufactured in Ireland for supply directly to consumers in the various supermarkets in the UK and throughout Europe.
While accepting what the Minister says, would he not agree that the direction the industry is taking is going to render absolute in terms of the stated Government policy of today many of the promotional agencies which were there when intervention was more important and when companies did not have their own promotional activities?
I do not accept that thesis. Rather than rendering promotional agencies obsolete their role will have to be enhanced and improved and that a greater marketing and promotional effort will be required. Because our dependence on intervention and opportunistic markets will be lessened we will have to have regard more and more to the marketplace. We will be dependent on the good offices of State agencies to do the best marketing job possible for the future of the industry.
I have one more question.
I am sorry Deputy but I wish to deal with three more questions within the prescribed period. The Deputies had a fair innings. I will allow a brief question.
In view of the fact that Irish farmers receive the lowest returns for milk and beef at the farm gate would the Minister accept that the track record of the promotional agencies up to now has been good?
I do not think I can accept that. As the Deputy well knows there are a number of peculiarities in relation to Irish agriculture, for example, seasonality of supply and a number of other factors which are peculiar to Ireland. Generally we want to improve efficiency and product development and marketing and get a better price back to the farming community.