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Agricultural Processing Sectors.

Dáil Éireann Debate, Wednesday - 29 November 2006

Wednesday, 29 November 2006

Questions (63, 64, 65, 66)

Jimmy Devins

Question:

48 Dr. Devins asked the Minister for Agriculture and Food her views on the development of the dairy, beef and sheep processing sectors; the policies she will put in place to support such development; and if she will make a statement on the matter. [40275/06]

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Johnny Brady

Question:

82 Mr. J. Brady asked the Minister for Agriculture and Food her plans for investment in the dairy, beef and sheep processing sectors. [40260/06]

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Joe Callanan

Question:

88 Mr. Callanan asked the Minister for Agriculture and Food her plans for the development of the dairy, beef and sheep procession sectors; if she is optimistic with regard to same; and if she will make a statement on the matter. [40271/06]

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John Cregan

Question:

120 Mr. Cregan asked the Minister for Agriculture and Food her plans for investment in the dairy, beef and sheep processing sectors. [40394/06]

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Written answers

I propose to take Questions Nos. 48, 82, 88 and 120 together.

In keeping with commitments given in the agri-Vision 2015 Action Plan, I have in recent months announced investment packages totalling €150 million to support the development of the dairy, beef and sheep meat processing sectors. €100 million is for the dairy sector while €50 million is being provided for the beef and sheep meat sectors. This substantial grant assistance, which should trigger investment in excess of €400 million, is yet another clear indication of the Government's commitment to the continued development of a modern, competitive, innovative and market-focused food industry.

Financial support will be made available towards the cost of the construction and acquisition of buildings, new machinery and equipment and will significantly assist the industry in improving efficiency and competitiveness. Indeed, I would, at this stage, like to commend the positive response, over recent years, of the dairy, beef and sheep meat sectors to the challenges presented in an ever-changing market. This has made a major contribution to the enhanced status and reputation of Irish produce abroad. In Government we strived to lead that progress and assist stakeholders by adopting pragmatic, if ambitious, policies in supporting the development of the sectors.

The investment schemes will be managed by Enterprise Ireland who will evaluate the suitability of investment projects submitted for grant assistance.

I launched the Dairy Investment Fund in September 2006 and the closing date for applications was Thursday last 23 November. The Dairy Fund will support Annex 1 dairy projects where the input and output is a minimum of 75% Annex 1. I was very pleased to be informed by Enterprise Ireland that the Dairy Investment Fund was over subscribed. An Evaluation Committee, comprising of representatives from EI, my Department and other experts, will select the projects to be grant aided following a detailed technical and commercial analysis of each project.

While the scheme for the beef and sheep meat processing sectors was only announced on 8 November, there has already been a very positive response from the industry and I expect significant progress to be made fairly quickly. I am at present in consultation with Enterprise Ireland and expect to be in a position to publish the full eligibility criteria and terms and conditions of this scheme in the near future.

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