Dáil Éireann debate -
Thursday, 18 Dec 1997

Vol. 485 No. 4

Written Answers. - Economic and Monetary Union.

Phil Hogan

Question:

21 Mr. Hogan asked the Minister for Agriculture and Food the preparatory work, if any, that he has undertaken to assist food exporting companies to cope with access to Economic and Monetary Union; and if he will make a statement on the matter. [23180/97]

Minister for Agriculture and Food (Mr. Walsh)

The Irish food industry is well placed to meet the opportunities and challenges of the EMU. Through its emphasis on competitiveness and market orientation, the current development plan for the industry has laid a solid foundation. The results in recent years have been very positive. Employment targets within the food sector have been exceeded and, despite the BSE-related difficulties, the value of exports in 1996 was equivalent to the previous year's level.

Development plans must, of course, evolve to take account of changes in the environment such as the advent of EMU. In this regard, I am satisfied that the amendments made to the food development plan in the recent mid-term review of Structural Funds are in the right direction. These reinforce the competitiveness and market orientation themes through their emphasis on issues such as food safety, supplier development programmes and world class manufacturing techniques.

The decision to be taken next May on the fixed exchange rates of EMU will, of course, be an important one for all sectors of the economy, including the food one. While market sensitivity precludes much comment on this issue, the Minister for Finance has indicated that the intention is that Ireland joins EMU at an exchange rate that meets the needs of the economy, in the fullest sense of the term, and that between now and the time the decision is taken, the issue will be kept under active review. I have had discussions with the food industry representatives about the possible implications and I will remain attentive to their concerns.

It is important to emphasise the need for individual food companies to make their necessary practical arrangements for EMU. I commend to them the EMU business awareness campaign operated by Forfás and the relevant initiatives of their own representative groups.