asked the Minister for Agriculture and Food whether he has any proposals to resolve the crisis facing potato producers.
Ceisteanna—Questions. Oral Answers. - Potato Industry.
48.
A number of initiatives have been taken with regard to the potato sector.
On 1 June I had wide-ranging discussions with the Irish Farmers' Association about the development of the sector. The main purpose of the meeting was to discuss ways of improving the marketing, quality and presentation of Irish potatoes to enable producers to compete effectively with imports and have reasonable returns. I look forward to the continued co-operation of the IFA with An Bord Glas.
The question of appointing a market co-ordinator for potatoes is also being considered.
The extension of the regulation on producer groups to potatoes and the possibility of increased FEOGA grants for the provision of potato storage have been raised with the Commission.
Earlier this year An Bord Glas organised a promotion campaign for potatoes in order to generate consumer awareness of the range, health, eating qualities and suitability of Irish potatoes to meet consumer demands and in order to reduce imports. An Bord Glas appointed an expert commodity team to examine the potato sector. The report of the team, which is at present being considered, will form the basis of a five-year development plan for the industry.
On 17 June I had a meeting with potato producer representatives, regarding the slow uptake of the early Irish crop and the consequential effect on producer prices. This was followed by a meeting with representatives of major supermarkets, wholesalers and importers who gave a commitment to support the marketing of high quality, well presented Irish potatoes.
Would the Minister accept that this £100 million industry has faced a number of crises over the past 12 months and that action is necessary to get some order into the market and ensure protection for producers? Furthermore, would the Minister consider and comment on the following; first, why has the regulation in relation to below-cost selling not been applied to the potato industry? I know this is probably proper to the Minister for Industry and Commerce but surely the Minister of State present should have some input in any such decision. Second, is the Minister satisfied that the regulation in regard to identification of growers, their registration and so on is being implemented, because it is my understanding that the regulation is not being implemented to any great extent? Third, would the Minister consider changing the existing grading regulation? It has been suggested to me that a change in that regulation by way of increasing the minimum size would be helpful from the point of view of regularising the market. Fourth, has the Minister any proposals at all——
I must dissuade the Deputy from putting questions in an omnibus form.
I am cognisant of the fact that there are a few other questions to be dealt with. Has the Minister any proposals at all for providing better incentives for on-farm storage and some encouragement to producers? I should like a specific reply from the Minister to those four queries.
If I may take the last of the Deputy's questions first, as I said in my reply, we have made application to the Commission for a substantial increase in grant aid for potato storage. The expert commodity team established for the potato industry clearly identified a serious storage problem at farm level. That commodity team estimated that there was a need for something in the region of 80,000 to 90,000 tonnes storage space on farms which would involve considerable capital investment. While I would be the first to recognise that the potato industry, of its very nature, has been through difficult periods, not alone in the past 12 months but over many periods in the past, I would have to say that there is no common market organisation for potatoes within the Community. There would appear to be considerable resistance among some other member states of the EC to the establishment of a common market organisation for potatoes.
With regard to the question the Deputy raised about below-cost selling, I should say that, when the relevant legislation was first introduced, there was provision that it be revised after a 12 month period. I am sure that the position with regard to potatoes will be considered then. I do not want to anticipate what may happen but I am sure that the problems of that industry will be considered within that legislative review. As I said in my comprehensive reply on the industry as a whole, the expert commodity team examined the matter and brought forward specific recommendations which will form the basis of a five-year development plan for the whole industry. I hope that plan will be available in the not too distant future and will chart the future course of the industry, placing it on a firm footing from which it can progress.
Would the Minister deal with the regulations and the implementation of the legislation and the regulations in regard to grading?
The legislation of which the Deputy speaks was introduced by my predecessor, Depty Hegarty. We must consider this matter against the background of there being approximately 66,000 primary potato producers with approximately 61,000 to 62,000 growing less than a hectare of potatoes. Therefore, the Deputy will readily appreciate the difficulties encountered in that area. There are some producers who have registered but, naturally, we would be much happier were more to register. Within the context of the development plan for the industry we shall apply our minds to that aspect.
May I seek the permission of the House to correct a rather important matter which has just been brought to my attention and which will not interfere with the order of questions? In replying to a supplementary question I indicated that, as far as I knew, there was no limit to off-farm income in relation to the western package. It has been brought to my attention that, under an existing regulation of 1985, there is such a limit, though it did not form part of the negotiations in which I was involved.
What is the limit?
The limit is £9,200 for off-farm income, which must not exceed 80 per cent of the reference income for the purposes of EC regulation 797 of 1985. I just wanted to correct the record in that respect.
I am glad the Minister corrected it.
Question No. 50.