I move: "That the Bill be now read a Second Time."
The purpose of the Bill is to establish An Bord Glas as an independent statutory body. The Government believe that the much needed development of our horticultural industry can be achieved only if responsibility for the development is put in the hands of a body with specific overall responsibility to carry out the task. It is clear, however, that An Bord Glas on their own cannot achieve the necessary developments. They must work with other Government agencies such as Teagasc who have responsibility for advice, research and education, Córas Tráchtála in regard to export development, the IDA, SFADCo and Údarás na Gaeltachta as regards aid for industrial development within horticulture. An Bord Glas must also, of course, maintain close contact with the Department of Agriculture and Food and with developments within the European Community.
In addition to those bodies there are, moreover, the producers who are a most important element in the development process and the wholesale and retail merchants who have a very important part to play, both in their contacts, direct or indirect, with producers and in the considerable influence which they have on public reaction and perceptions.
Finally, there are what in the past might have been called the Irish housewives — I am a little hesitant in using that term today — but what I have in mind are the people who daily or weekly buy their requirements in fruit and vegetables. As regards these latter, whatever name we call them, I am quite confident that Irish purchasers are more than willing to support Irish horticultural produce provided they are offered products which are of good quality and well presented and represent value for money. It will, therefore, be a key function of An Bord Glas to achieve that objective.
I am by no means putting myself forward as an expert on diet but there is general agreement that our people would be all the better for eating substantially increased quantities of fruit and vegetables. We hear a lot about the damage which people may do to their health from an unbalanced diet or quite simply eating the wrong foods. No doubt there is often an element of propaganda involved when particular foods are either being castigated or praised but fruit and vegetables would come into any recommended list of healthy eating.
I was recently looking at figures published by the World Health Organisation on the extent to which people in various countries die prematurely from coronary heart disease. Ireland, along with some of our nearest neighbours, is very high on the list. However, France — a country noted for its dedicated gastronomes — is very low on the list. I wonder why. I have heard it suggested that it is perhaps because the French consume more wine than we do. That I think is hardly the answer. Whatever the explanation, I think it is noteworthy that the French, as well as being good eaters, are also high consumers of fruit and vegetables, and I have no doubt that this does them a lot of good.
I do not think there will be any great argument as regards the need for future development of our horticultural industry. That industry has shown some improvement in recent years but to enable it to develop better and faster has long been the concern of successive Governments even before our accession to the European Community but obviously with increasing concern since accession. We need An Bord Glas as a co-ordinator and focal point to bring together all the various elements which make up Irish horticulture so that the necessary development can be more quickly brought about.
As Deputies will know, An Bord Glas were set up on an interim, non-statutory basis in April 1987. The chief task which the board set themselves was to carry out a detailed study of the various sectors of the Irish horticultural industry so as to find out where the weaknesses were and to decide on the best means of improvement. The board set up seven different teams for the various horticultural commodities. Each team was made up of experts in the business of producing or marketing horticultural products, people with scientific and other specialised knowledge and also people from the State and semi-State sectors. As a result of the deliberations of these experts, the board were presented with a very large volume of diagnoses of the weaknesses of the industry and prescriptions for remedying those weaknesses. Last November the board, having gone into all the various findings and recommendations, produced a five-year development plan for horticulture. This is a most important document because it sets out what can be achieved if the right methods are followed and if everybody concerned plays their part.
The Bord Glas development plan foresees that, over a five-year period, we could increase very substantially the quantities we produce of our total requirements of fruit and vegetables. The board estimate that the value of that increased production for home requirements could be as high as £31 million. I would like to give just a few other statistics. We supply on average about 45 per cent of our home requirements. An Bord Glas see that figure being increased to 60 per cent. That increase is the maximum achieveable because considerable quantities of what we need are products which cannot be produced in the Irish climate. There is also the problem of seasonality, that is, at certain times of the year growing conditions are not suitable for certain products, particularly field vegetables. As well as the £31 million which could be gained by increasing home production, the board also see that there are possibilities for increasing exports over the five-year development period to reach a total yearly value of £27 million. All this has the potential to create 1,750 full time new jobs and 1,500 part time new jobs. At this point I should say that these figures exclude the seed-potato sector which the board examined separately and which will be the subject of a separate development programme to be published shortly.
The main problem which An Bord Glas in their inquiries found with Irish horticulture nowadays is that marketing is weak. What is meant by marketing? The first essential is that the producer should embark on a plan for the production of a particular crop only after he has clearly established where, how and when he will sell it. At the present time about 60 per cent of the total sales of fruit and vegetables in this country are carried out through supermarket groups. Already, the supermarkets have good contacts with selected growers. This system could be extended and, in local areas, producers could for example look at independent retail outlets who would be prepared to do business provided certain essentials such as certainty of delivery, quality and presentation are met. It is, of course, difficult for an individual producer to give guarantees as regards supply. For that reason producers must join producer groups. There are a few such groups already in operation in the country, but they need more members. There is very substantial aid available through a European Community scheme to enable producer groups to establish themselves. One of the main tasks of An Bord Glas will be to encourage growers to join producer groups. I would like to repeat what I have frequently said to producers — that anybody who is thinking of developing a worthwhile business as a horticultural producer must think very seriously about joining a producer group.
I would now like to talk for a little while about specific crops. I will begin with the mushroom sector which has been remarkably successful and is going through a period of continuing expansion. The mushroom industry is significant, not only because of its continuing successful growth, but also very much because the great bulk of its output is sold on the export market. The present yearly output of the industry is valued at some £24 million and the expectation is that in 1992 this figure will be of the order of £50 million worth. The industry is a striking example of very close co-ordination between production, preparation for market and marketing. Very significant investment has been made by private enterprise aided by the State and with very considerable help from the agricultural research and advisory services. The industry is, however, working in a very competitive market. There has to be constant attention to top quality and everything else that goes with good marketing. Because of these factors and the very high investment needed at all levels from production right through to marketing, very careful thought has to be given to how the industry expands. This is an area which An Bord Glas has been very conscious of and has been continuously monitoring in close consultation with all the other interests involved. The board will continue to be closely involved in this area and Deputies will note that the board are being given power of consultation in regard to State investment under section 9 of the Bill.
Another sector which I would like to talk about is what is known as hardy nursery stock and amenity horticulture. This sector embraces the business of producing small trees, shrubs, and plants for use by private people in their gardens and by private authorities for the improvement of the appearance of public places, parks, gardens and the area surrounding buildings. Of growing importance also is the business of planting trees and shrubs along motorways. One point which, I am sure, the House is well aware of is that this country, compared with other countries in Western Europe, has a remarkable climatic advantage in regard to the growing of trees and shrubs. The hardy nursery stock sector is making progress here and has, for some time now, been endeavouring to establish itself in a strong position on the British market where there is great scope for this business. Again, as in the case of fruit and vegetables, marketing is extremely important as is close co-ordination between producers. Supplies needed by public authorities or large private garden centres can be very substantial and the products of more than one producer could be called upon to meet an order quickly and to specifications. There is great scope for the hardy nursery stock sector and I am glad to be able to tell the House that An Bord Glas, together with Córas Tráchtála, IDA and a number of people in that sector, have already made the first necessary steps towards a more co-ordinated and developed approach to export markets. For the moment, concentration is mainly on the British market, but of course the sector will be looking beyond the English Channel even perhaps, I hope, before 1992. Indeed, at the risk of being accused of being too ambitious — and I do not think in connection with horticulture that over-ambition is a fault once it is guided by planning and attention to all the aspects of good marketing — I would look beyond the shores of Europe. I say this because of the very significant part which Ireland will be playing in the Garden Festival in Tokyo. This festival is to be opened in April 1990 and there is, of course, an Irish garden already being prepared. The benefits of that particular activity will, I hope, extend far beyond the horticultural sector but I think that it is appropriate that I should mention it here.
Having talked about the great success of mushrooms and the hope for developments of hardy nursery stock and amenity horticulture, I now come to the product about which, I regret to say, I cannot speak of such great success. I am talking about the ware-potato sector. While we have had undoubtedly some improvements in this area in recent years we still have a long way to go. Potatoes can be a risky crop. From year to year there can be very significant fluctuations in price, and producers can suffer. We saw examples of this in 1988 when there were prices which at times did not cover the producers' production costs. This year the situation has improved for producers. There is no reason why we in this country should not be able to supply almost completely and fully all our needs of good quality potatoes. Unfortunately, in the past there have been very high imports of potatoes, although again this situation has improved recently. The potato sector is the most disorganised of all the sectors I have to deal with and I place it as the top priority of An Bord Glas in regard to trying to make improvements. Improvements can be made. Again it is a question of good marketing and co-ordination between producers. Potato producers, of course, realise that no longer can there be let or hindrance — except on disease grounds — to imports of potatoes from other parts of the European Community and, as we all know, under the Community agreement with Cyprus, that country supplies at certain times of the year considerable quantities of potatoes to the market. But there is no reason we should not be able to produce almost all our requirements of potatoes with reasonable returns to producers and reasonable prices to consumers. Quality and presentation are all important. I think that most Irish people shopping for their weekly supplies will be more critical of the potatoes presented to them than of any other vegetables or fruit on display. All I have already said about marketing applies with as much force to potatoes — indeed more so — as to any other product. What I said about producer groups certainly applies.
In the past year, indeed, the European Commission has at our request extended the producer group regulation to Ireland for potatoes. Accordingly, similar financial advantages as for producer groups for other vegetables now apply to potatoes. Already, An Bord Glas have been very actively in contact with the IFA about what is to be done about this product. The IFA are more than willing to play their part and arrangements are being made between An Bord Glas and the Irish Farmers' Association to appoint a potato marketing co-ordinator. It has to be said that there are a number of excellent producers in the potato business, but there is great room for improvement. It would be a pity if that improvement were not made. An Bord Glas will be striving earnestly to ensure that it will be made.
I am also very much concerned about the development of our seed potato industry which unfortunately has had, for some years now, a continuously declining performance in the export sector. As I said earlier, An Bord Glas examined this sector separately to see what is the best way to restore the industry to its performance of some years back and I look forward to receiving this report shortly. It is important, not only for the export business, that we continue to have a growing output of seed potatoes — but that we should also have of course a continuing supply of high quality seed for home requirements.
I would like, before completing my comments on individual product sectors, to deal with the effect on the glasshouse sector of our entry to the European Community. The effect has been greatly increased competition for that sector, especially in regard to tomatoes. The difficulties of this sector were of course compounded by the energy crises of the seventies. In recent years there has been an improvement but the great part of the industry in those years had found itself with glasshouses which were very old, in poor condition and no longer suitable for modern competitive production conditions.
A decade ago a yield of 200 tonnes per hectare from an early heated tomato crop was acceptable and profitable. To survive nowadays and looking forward into the nineties a yield in excess of 350 tonnes per hectare is needed. These yields are being obtained by some growers. They have been brought about by growers examining the latest technology within the European Community, modifying with the help of Teagasc and then making the necessary investments in their holdings. However, it was urgently necessary to stimulate substantial additional investment. Accordingly, on the basis of a recommendation in the Bord Glas five year development plan, I was glad to be able to announce in July last that I had got approval from the Government and from the EC Commission for a special new scheme of capital grants and a substantial improvement in existing grants under the farm improvement programme to modernise and upgrade existing glasshouses and build additional glasshouses. Considerable investment is needed. I am talking about a figure of about £11 million, with State grants of £3 million over five years. As a result there will be extra production of 6,500 tonnes of tomatoes. To meet the competition of other Community suppliers, these new and modernised glasshouses together with — and I make no apologies for repeating it — good marketing are needed. Indeed, in the glasshouse scheme which I introduced in July, grants will be given only where the grower can show that he already has a properly developed marketing system or that he will implement one.
I will not deal further with individual products, but An Bord Glas, in addition to doing the very important job of producing their development programme, have also been involved in a wide range of day to day and seasonal activities in a large number of horticultural sectors. As examples of this involvement I mention very briefly the soft fruit sector — where there are prospects for further development — the apples sector — where I would like to see an increase in production and where some very welcome new investment has already been made — and the onion sector — where there are prospects for development. In both apples and onions, we are far too dependent on imports and I believe that there are possibilities for a great improvement.
Before coming to the provisions of the Bill I would like to refer to what the position will be in regard to the very important matter of controls for plant health purposes in the Single European Market.
On the plant health side, the future trend will be towards freer and more standardised controls between member states, with the major responsibility being placed on the exporting member state to ensure freedom from pests and diseases, and a diminishing right for the receiving member state to make check inspections at import. As you know, Ireland, because of its island location and strict plant health controls over many years, has succeeded in remaining free from many serious pests and diseases which occur in parts of continental Europe. Examples are the Colorado beetle, potato ring rot disease and various viral and other diseases and pests of horticultural crops. In the negotiations on the new régime which is intended to be in place by 1992, it will be our policy to preserve safeguards against the more serious organisms and to uphold the traditional high health status of our crops. We are fully committed to the completion of the internal market but not on the basis of disseminating disease. However, it is clear that a greater degree of responsibility will also fall on producers and growers, particularly when buying in planting material from abroad, to ensure that they are dealing with reputable firms which can guarantee the quality and disease free status of the plants. Protecting our high health status is not simply the responsibility of the Government or the Department.
Another feature of the new system will be the elimination of phytosanitary certificates in trade between EC countries and their replacement by a system of plant passports. The principle of the system is that all plant material being produced for sale in any member state will be examined by the plant health authority of the country of production and, if it meets the standard, it will be issued with a plant passport. This will enable the plants to be sold on the home or export markets without further formality at the time of export.
The details of this system have not yet been finalised in Brussels — there is much negotiation yet to be done — but it is clear that growers, advisers and the Department will have to work closely together to ensure that all material produced is up to standard. It will probably mean the registration of growers, particularly in the nursery stock section of horticulture, so that controls and growing season inspections can be carried out as required with a view to controlling the plant passport system.
I emphasise that close co-operation is essential because, not alone are we trying to ensure against the introduction of diseases and pests of which we are at present free, but we are equally responsible for maintaining the traditional high standard health and quality of Irish exports which are the cornerstone of successful development and expansion. As soon as the various aspects of the new system are agreed in Brussels there will be full consultation between the Department and the various commercial interests so that the new arrangements can be introduced smoothly and efficiently.
I will now come to the provisions of the Bill before the House. I would like to refer to a few of the main sections. Before doing so I should also tell Deputies that, at one stage in the past year after the Bord Glas Development Plan had been published, the Government gave consideration to having An Bord Glas not as the now proposed independent statutory body but rather as a subsidiary company of Teagasc. There were very cogent arguments in favour of having An Bord Glas as part of Teagasc but, unfortunately, they tended to militate against one clearly identified, over-riding need of Irish horticulture, that is, the need to set up a separate body which would act as a single and distinct focus for the development of the industry. Moreover, while Teagasc will concentrate primarily on research, training and advice in relation to agriculture as a whole, the work of An Bord Glas will be directed towards a range of activities which are set out in sections 4, 5, 8, 9 and 10 of the Bill.
At the same time An Bord Glas will have to operate very closely with Teagasc. In this connection I would like to refer in particular to section 8 of the Bill, which provides for a particular form of co-ordination and collaboration between the board and Teagasc. This is a very important provision. Indeed, it is already in operation because, over the past year, the chairman of the board, the chief executive of the board and I have been in very close contact with the chairman and director of Teagasc. The current interim board have the director of Teagasc as one of their members. In practice, the present board are in very close and constant communication with Teagasc at various levels. These day to day practical and sensible arrangements will continue in the future and will, of course, be essential for the effective operation of section 8.
I would also like to refer to section 9 of the Bill which gives An Bord Glas a specific responsibility in regard to both State investment in horticulture and the curricula for higher education in horticulture. This is a very significant provision because it gives An Bord Glas a necessary say in what money the State will, through its agencies, invest so as to ensure that such investment is in accord with the board's functions. Secondly, the board will have an opportunity of influencing higher education in horticulture and through this the formation of future leaders in the education, research, advisory and other sectors of the industry including, of course, the production sector.
Section 12 provides for a levy by the board on the sale of horticultural produce. When that levy will be brought into operation, I cannot say. Neither would it be sensible to try to make any forecast as to what the rate of levy will be. Those are matters in the first instance for An Bord Glas to discuss and propose. It will be noted that the section provides that different rates of levy may be prescribed in respect of different classes of persons liable to pay levy. It is also important to note that the Oireachtas will have an opportunity of approving of the necessary regulations under section 12 (7).
The explanatory memorandum accompanying the Bill sets out the various provisions and I therefore propose to confine my concluding comments to the more important remaining provisions. The primary purpose of the Bill is set out in section 3, that is, the establishment of An Bord Glas as a statutory body. Sections 4 and 5 set out the functions of the board. The keynote in these provisions is flexibility. The board are given powers to engage in a broad range of activities designed to secure comprehensive development of the horticultural sector. Section 6 entitles the Minister to attach new functions to the board so as to enable a change of course or corrective action in response to changing needs.
Section 19 authorises the Minister to make advances from the Exchequer to the board in order to enable them to perform their functions. In this context it is important to bear in mind that the board will not be totally dependent on the Exchequer for funds. Section 11 empowers them to charge for services and, as already mentioned, section 12 provides for the imposition of a levy. The staffing of the board and related matters are covered in sections 15 and 16. The remaining sections of the Bill are, generally speaking, fairly standard legislative provisions for a body of the nature proposed. In particular a number of the provisions are similar to those contained in the Act establishing Teagasc.
The Members of An Bord Glas will consist of a chairman and ten members appointed by the Minister for Agriculture and Food. Both chairman and members will hold office for a period of three years.
At this juncture I consider it most important to emphasise that the Bill is not protectionist. While we realise that Irish horticulture has had enormous problems since our accession to the European Communities, we must also recognise that we are members of the European Communities and we must face up to the fact that the horticultural produce of other member states and third countries which have agreements with the EC enjoy access to our markets. Our task, therefore, is not to fear imports but to confront, with resolve and optimism, the challenge they present in the excellence of their quality, presentation and uniformity. The bald truth is that we have a lot to learn from the horticultural sectors in other member states. They are, for example, stronger on organisation and marketing than we are. However I am convinced we can meet the challenge and that An Bord Glas will have a pivotal, catalytic role in ensuring that we do.
I commend the Bill to the House.
