Derek McDowell
Question:12 Mr. McDowell asked the Minister for the Marine and Natural Resources the contribution which Irish farmed salmon makes to the export economy; and if he will make a statement on the matter. [12431/99]
Other Questions. - Farmed Salmon Industry.
As a significant component of both the Irish aquaculture and fish processing industries, farmed salmon will continue to make an increasingly important and growing contribution to Irish seafood exports currently valued at some £250 million per annum. The Irish farmed salmon industry is now producing over 15,000 tonnes per annum currently valued at £40 million. Some 75 per cent of production is exported to international markets in primary and value added form. While Irish farmed salmon production volume is still very modest by comparison with the major competitors, Scotland and Norway, it is recognised in the key overseas markets as a premium quality product.
From modest beginnings in the early 1980s, the Irish aquaculture industry, of which the salmon sector is the major component, has grown significantly in recent years. The value of the aquaculture sector to the economy has almost quadrupled in the past ten years to £60 million, which is largely export driven. Aquaculture also contributes over 25 per cent of raw material supply to the seafood processing sector. This development has been underpinned by national and EU funding support which has served as a catalyst for the growth of Irish farmed salmon production. Since 1994 alone under the current Operational Programme for Fisheries over £7 million has been invested in the development and modernisation of farmed salmon facilities around our coastline. This investment strategy has been fully backed by BIM and Údarás na Gaeltachta. The new aquaculture licensing framework which is now in place will also underpin and facilitate further sustainable development.
Irish farmed salmon is already a recognised quality product with a competitive edge in the marketplace and we must now build on the potential for further sustainable expansion of the sector. BIM Seafood Industry Agenda 2000-2006, together with the IFA's strategy for aquaculture investment post 2000, underlines the challenges and opportunities for the sector in the medium term and proposes an investment programme to support ambitious but realisable targets for aquaculture output and value. I will work to deliver the necessary investment support for the aquaculture industry under the next national plan.
I thank the Minister of State for his reply. Does he agree this is possibly one of the most exciting areas of development, not only in financial terms but also in employment terms? What is his opinion on the possibility that we might outstrip Norway and Scotland in this regard in view of the fact we have the natural facilities available to us to? What is his view on the development exports in farm grown salmon over the next ten years or so?
I agree with the Deputy that the farmed salmon industry is exciting and I intend to continue to promote it. Many jobs are created in this industry in remote rural areas where jobs would not otherwise be created. We need to consider moving towards the development of added value. This is ongoing and substantial grants have been made available to various people interested in this area. Licensing is also an important part of this industry and we are progressing well with the issue of licences. I assure the House we will continue to do so on the basis that this is an industry with tremendous growth possibilities.
In the interests of maintaining the good name of Irish salmon and other fish exports, I would like to know the position of the service contract being worked out between the Food Safety Authority of Ireland and the Department. I understand there have been delays in concluding the negotiations. Does the Minister of State have any news on that?
Discussions are ongoing and I intend to bring them to a conclusion as soon as possible in the interests of the industry. I thank Deputy Sargent for raising this issue. The Department is very keen to insist on quality rather than on quantity. We want to keep the good name of Irish fish exports alive, which we are doing. The focus is on quality rather than quantity.