The purpose of the Bill is to establish An Bord Glas as a statutory body. The Bill was passed by Dáil Éireann on 13 December 1989.
Senators will be aware that changes brought about by the events following an our accession to the European Communities, in particular the effects of free trade, the energy crises and a certain lack of organisation and preparedness within the horticultural industry itself, left us in the position where products capable of being produced in this country were, and still are, being imported. At the same time, however, we have to be realistic and accept that some imports will continue, but it is obvious we must capitalise on what we here in Ireland can do best and concentrate our efforts on those areas which offer the greatest scope for expansion and import substitution. Horticulture, by its very nature, is an intensive employer of labour and it was this factor, as well as the potential for expansion, that led the Government to place special emphasis on this sector.
I think there would be unanimity on the need to revitalise and develop the horticultural industry. There might, however, be differences of opinion as to how this is to be done. We have a country which enjoys advantages of climate, labour resources and high plant-health status. Hence there is no good reason why we cannot reduce imports, increase exports and, in the process, create jobs. This is the objective of An Bord Glas as proposed in the Bill now before the House.
It is the Government's view that the type of body now proposed is the best vehicle to achieve the goals I have referred to. Some commentators have decried the direct involvement of the State in this sector and advocate the continuance of a laissez-faire approach. However, on the evidence of the general performance of the sector since our accession to the EC, it is clear that interventionist measures are necessary if the decline of some areas is to be arrested and recovery made. Even in areas which have been successful there is room for State involvement and continuation of support so as to ensure that the success already achieved is maintained and enhanced.
Shortly after my appointment in 1987 An Bord Glas was set up on an interim, non-statutory basis. One of the first decisions of the interim board was that a very intensive and detailed examination of the industry was essential. As a result of this examination the interim board produced a report and a set of recommendations in November 1988. This document is titled "A Programme for the Development of Horticulture". The main task of the new board will be to implement these recommendations. Additionally, a separate programme on the seed-potato industry was published last December. Copies of both programmes are available in the Oireachtas Library. The two programmes taken together envisage a market-share recovery and export expansion of £60 million and the creation of 1,800 full-time and 1,500 part-time jobs over five years. Of the £60 million, £29 million will be increased exports and £31 million will be import substitution. These are ambitious but nonetheless realistic targets.
The industry is already showing its capacity for providing employment. Some 300 full-time and 400 part-time jobs were created in 1989 under the development programme and this trend is set to continue over the next four years.
The interim board has already taken action on a wide variety of fronts. One of the strongest elements of the report I have referred to was the emphasis which was placed on the need for much improved marketing if the industry is to progress and move in the right direction. As Senators will note from the Bill, the statutory board will have a strong, positive marketing orientation.
The interim board has also taken special action in regard to the ware-potato sector — a sector which is very clearly in need of continuing improvement and which in many ways typifies the difficulties which the horticultural industry must confront. Even though certain improvements have taken place, this sector is one where there is least justification for imports. The problems in this area have been well analysed and documented and we have reached the point where concerted action is needed. Special arrangements are currently being set up for close co-operation between the board and the Irish Farmers' Association to improve the marketing of potatoes.
The seed-potato sector is another area which has been of considerable concern to the interim board and indeed to myself. This sector has been in decline for a number of years and urgent action is necessary to reverse this decline and restore the industry to enable it to regain valuable export markets. A healthy seed-industry is also essential for a healthy ware industry. The seed-potato area is very specialised and, accordingly, the interim board set up a separate commodity team to examine it in detail. The team's examination led to the programme for the seed-potato industry I mentioned earlier. I firmly believe that this sector has considerable potential and that, with some new thinking and initiatives, progress can be achieved.
As Senators will be aware, the Government, in their Programme for National Recovery, are laying special emphasis on the development of our horticultural industry. A cardinal element in our policy for horticultural development is the promotion of organised production and marketing through the development of producer groups. The changing pattern at retail level, brought about by the growth in supermarkets and the change in consumer demand, has meant that horticultural produce must be of the highest quality and has to be supplied on a continuous and reliable basis. I am convinced that the best way to meet the challenge of this changing demand and to compete successfully against imports is for growers to join together in producer groups to organise and market their produce.
It cannot be emphasised too often that the go-it-alone approach is a thing of the past. The future of the industry depends largely on growers accepting the philosophy of co-operation in selling their produce. We have a number of producer groups in operation at present but we need more growers in groups. That is why we made special representations to the EC Commission, who in turn extended the producer-group regulation to Ireland for a number of products, including potatoes. As a result, valuable financial aid is now available towards the cost of setting up and running a potato group.
What are the advantages of group membership? Well, it needs to be recognised, as the interim board already has, that weakness in marketing is one of the great problems of Irish horticulture, particularly potatoes. By coming together in a producer group to sell produce on a joint basis, growers are in a better position to meet present-day market requirements for produce in greater quantity, better quality and on a continuous basis. This improves competitiveness against imports and gives the grower a better opportunity of improving the return for his produce.
The board and the Government have also recognised the special difficulties facing the glasshouse sector. Accordingly, special aid for this sector was introduced last year in the form of a new capital grants scheme of 25 per cent and an increase from 15 per cent to 35 per cent for grants under the farm improvement programme. These were very significant developments and followed on a specific recommendation in the board's Programme for the Development of Horticulture which I referred to earlier. If these new grants succeed, as we expect they will, the result will be an increase in production of tomatoes by 6,500 tonnes.
Bord Glas will also be very actively involved in what is known as the business of hardy nursery stock and amenity horticulture. Here we are dealing not with edible products but with the decorative shrubs, plants and small trees that are used by people to adorn their private gardens or by local authorities or large public concerns in the landscaping of public parks and gardens, roadsides or areas surrounding buildings. We have a particular advantage in Ireland for growing trees and shrubs. There is great scope for the hardy nursery stock sector, especially on export markets. Already the interim Bord Glas in consultation with Córas Tráchtála and the IDA have taken an initiative to improve the co-ordination and development of marketing on export markets. I merely quote these as examples of the work of the interim Bord Glas. There were many other special initiatives which were also taken.
The new board will have broadly the same responsibilities as the interim board, that is, the development of all aspects of horticulture. The Bill, when enacted, will give An Bord Glas the status of a permanent statutory board. The Bill sets out in detail the activities in which the board may engage so as to help the industry to realise its full potential.
Apart from the very close involvement which the board will have with production and marketing, there are some specific points in the Bill which I would like to draw to the attention of Senators. A very important aspect of the board's work will be liaison with other State bodies and specifically Teagasc. Teagasc has the very important work of research, education and dissemination of advice to the agricultural and horticultural industries. In the case of horticulture, the annual programme of research, training and advice activities will be drawn up by Teagasc in consultation with An Bord Glas. This is provided for in section 8 of the Bill and will mean that there will be a strong linkage between the two organisations and that the board will have an important role in ensuring that this programme is relevant to the needs of the industry.
The Bill also provides that An Bord Glas will have the right of consultation in regard to State investment in horticulture, in regard to higher education in horticulture and in regard to grading and quality standards for horticultural produce. It is obvious, therefore, that An Bord Glas will be a focal point for the many varied lines of action which affect the development of horticulture in this country. The board have wide scope for action and will, I believe, produce very good results.
One important point, of course, is the availability of funds to the board. There is provision for State funding and the Bill, as Senators will have seen, is also providing for the possibility of the collection of a levy and charges for services by the board. However, money alone will not solve the problems of horticulture. It will be up to the board to bring about a reasonable, pragmatic balance between what can be achieved by spending money and what can be done by enterprise and initiative, a more enlightened attitude and a willingness to respond to the challenge of rapidly changing times and circumstances.
Within the range of horticultural products, we have a very wide spectrum of performance in regard to both exports and imports. On the export side we have the mushroom industry which has been very successful and is continuing to develop. In addition to the potential on the export market, the board believe that there is scope for increasing sales of mushrooms on the home market. Accordingly, the board recently joined with the industry in a promotional campaign with a view to increasing the consumption of mushrooms on the Irish market. Moreover, domestic consumption needs to be developed to complement the export trade. In this context a particular relevance attaches to the recent decline in the value of sterling. This is a matter which is outside the control of the Government. Currency fluctuations are an issue which will arise from time to time for any company competing in export markets. However, I recognise that because of its high dependence on the UK market, our mushroom sector is particularly vulnerable to any decline in sterling. The real answer to the problem is to ensure that we maintain competitiveness by keeping our own costs under control and that inflation and interest rates are kept down. Equally, we have to continue to improve yields, productivity and quality in order to compensate for any decline in the return from the market.
Unlike mushrooms, the demand for many other products is still, as I indicated at the outset, being met unnecessarily by imports, thereby hampering the potential for development at home in the interests of both the balance of payments and job creation. I am quite satisfied that Irish consumers are more than anxious to support Irish horticultural products provided quality, continuity of supply and presentation are of a high standard. Of course, success on the home market is often the launching pad for expansion into the export market.
At this point I would like to talk a little about dietary aspects of fruit and vegetables. It is intended that the statutory board will, in their promotional role, work closely with the Department of Health and health agencies to stimulate public awareness of, and interest in, fruit and vegetables as a very necessary and important part of diet. While I am not an expert on nutrition, I have considered it important on a number of occasions to mention the beneficial effect of fruit and vegetables in diet. There is now evidence coming forward to show that a diet with a good content of fruit and vegetables can prevent certain kinds of cancer.
In this connection I might mention a very interesting article I read of late on the dietary role of fruit and vegetables. It was written by Dr. Ronan Gormley of Teagasc and appears in volume 3 of Professional Horticulture, 1989. This reference is well worth mentioning here for the overview it provides of the literature dealing with the subject. The article highlights some of the beneficial effects of fruit and vegetable in relation to the prevention of various diseases. The author advocates an increased consumption of these foods in the Irish diet, putting special emphasis on uncooked items such as coleslaw and shredded carrot. He also urges that greater efforts be made to encourage children to consume more fruit and vegetables.
I would also add that reference was made in the Dáil debate on the Bill to an international conference on vitamins held last year in London. The one thing that struck me forcibly in an account of the conference published in the Irish Medical Times of 3 November was the link the medical experts have found between fruit and vegetable and the prevention of cancer. A delegate representing the American National Cancer Institute advocates that people be made more aware that a reduced risk of this disease is associated with a higher intake of fruit and vegetables. I like to think that the board are doing their bit in the direction of awareness.
A most attractive and colourful poster intended mainly for children has been prepared by the Fresh Fruit and Vegetable Information Centre with Bord Glas assistance. It is designed to introduce young children and their parents to the benefits of integrating fresh fruit and vegetable products into the daily diet. The poster has been sent to primary schools around the country: the intention is that it will result in a greater consumption of fruit and vegetables, not only among children, but among their parents as well.
I would now like to deal briefly with the Single European Market which will come into operation on 1 January 1993. I would like to refer in particular to its effect on a very important area of operations in horticulture, that is, plant health. It is, to some extent, correct to say that horticulture had its 1992, as it were, in 1980. Ten years ago the plant health directive came into operation here and plant material could move freely subject only to compliance with the directive. By the end of 1992, however, there will be further liberalisation of trade between member states by cutting down on the number of inspections and formalities in the movement of plants. Details have yet to be worked out in Brussels but the essence of the new arrangements is that the emphasis will be mainly directed at the point of despatch, with reduced controls along the way or at the point of destination.
On this island we have long enjoyed, and still enjoy, a freedom from many serious pests and diseases of plants. Mainland Europe knows this. It is imperative, therefore, that the horticultural industry continues to play its part in preserving that reputation particularly on the export market. The Department, for their part, have been meticulous in ensuring that all material certified for export conforms to the directive. Under the new arrangements I have just mentioned, there will obviously be more freedom but, with that increased freedom, there will be a correspondingly greater responsibility on the part of the trade. I would, therefore, appeal to traders not to be tempted to cut corners for the sake of short term gain which can only spell disaster in the long term.
I would now like to touch upon organic farming. Senators will be aware from the recent Budget Statement that a special unit is being set up in the Department to promote the development of organic farming. I shall have Ministerial responsibility for this unit, which will have a general co-ordinating role and will assess the opportunities for expansion in the sector. It will assist in the production and marketing of organic products and will liaise with the EC Commission and other relevant organisations. An allocation of £450,000 is being provided to cover measures for the promotion and development of the industry as well as the expenses of the new unit. There is a strong demand for organically produced food stuffs in member states of the European Communities and the Government believe there are very good possibilities for this country to be a substantial supplier to that market. The interim Bord Glas had already taken the initiative in so far as horticulture is concerned and had set up a working group to consider the production and marketing of fruit and vegetables using organic methods. The new unit in the Department will, of course, have a much wider remit than the working group. It will have to consider the possibilities in regard to all classes of agricultural products.
It is also worth mentioning that the EC Council of Ministers is considering a proposal dealing with production methods and presentation of organic products. Certain countries already have their own national rules on this subject. The proposal was put forward by the EC Commission in December and is at present being examined by a working group of the member states presided over by Ireland. I think the initiative taken as regards the special unit in the Department of Agriculture and Food is very timely and I look forward to worthwhile results coming from its activities.
It is true that for a long and foreseeable future traditional farming methods will continue to be the main means of producing food. It has also to be recognised, however, that there is a growing concern about excessive use of fertilisers and pesticides. Health and environmental considerations are behind this concern — notice has to be taken of it. Our role in this respect should be to anticipate likely developments and be in as good a position as possible to make the best use of opportunities.
I would now like to refer further to some of the salient provisions of the Bill. Its primary purpose is set out in section 3, that is, the establishment of An Bord Glas as a statutory body. Sections 4, 5, 8, 9 and 10 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.
I referred earlier to section 8. This section of the Bill merits particular attention in that it provides for a very close form of co-ordination between the board and Teagasc. Under its own Act, Teagasc must furnish, every year in advance, a statement of its proposed activities in agriculture. The point of section 8 is that the horticultural content of that statement must be drawn up by consultation between the board and Teagasc. The intention in this provision is to ensure that the two bodies co-ordinate their activities so as to generate a single concentrated thrust towards developing the sector and also to ensure that duplication or overlapping of activities are avoided.
Section 9 is also relevant here, in that it entitles the board to have a say in horticultural education, State investment and grading and quality standards in horticulture. To run ahead, 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 secton 12 provides for the imposition of a levy on horticultural products, as I said already. The levy has been the subject of much comment, debate and indeed a great deal of misrepresentation. While I do not propose to repeat all that has been said, I will just emphasise that if the work of Bord Glas results in increased business and profits for people in the horticultural industry, then it is only reasonable and natural that the beneficiaries should contribute towards the costs of the board's work on their behalf.
Senators will also note the very important provision in the Bill which provides that a levy can be introduced only if both the Dáil and the Seanad expressly approve the necessary regulations. These regulations will spell out, inter alia, the rate of levy, the point in the marketing chain at which it will be enforced, what products will be involved and what exemptions will apply. There is nothing sinister about the levy. There are precedents in other sectors, and the Oireachtas will have ample opportunity to consider the whole question and have the final say in due course. To round off, the staffing of the board and related matters are covered in section 15 and 16. The remaining sections of the Bill are, generally speaking, fairly standard legislative provisions.
Finally, in relation to the Schedule to the Bill, Senators will note that it provides for a board of 11, including the chairman, to be appointed by the Minister. There has been considerable comment and debate about the mode of appointment of the board as set out in the Schedule. Strong views were expressed in the Dáil on its merits and demerits. I must say, however, that having listened to the arguments and given the matter lengthy consideration in the meantime, I remain totally convinced that the method of appointment proposed is the best one and will result in a board which will be efficient, flexible and successful in performing the tasks we have set them.
I commend the Bill to the House.
