Vol. 470 No. 5
18 Mr. Callely asked the Minister for Agriculture, Food and Forestry the progress, if any, made on the action programme for the development of the food industry; the issues of concern, if any, which have been brought to his attention; the measures, if any, he intends to introduce to assist the food industry; and if he will make a statement on the matter. [19375/96]
28 Mr. E. Byrne asked the Minister for Agriculture, Food and Forestry the progress, if any, made to date with regard to the implementation of the national development strategy for the food industry; and if he will make a statement on the matter. [19409/96]
I propose to take Questions Nos. 18 and 28 together.
The National Development Strategy for the Food Industry provides a framework for growth in the industry and a blueprint for its development to the year 2000. Following my launch of the strategy in February 1995, the implementing agencies published their five year development plans. These plans are consistent with the strategy and detail the arrangements for implementation of the various measures contained in it.
There has been good progress to date under the strategy. Up to the end of June 1996 713 projects involving total grant assistance of £78.4 million were approved. These projects cover investments in fixed assets, research and development, marketing and promotion and human resources. While the time lag between approval of projects and their completion prevents definitive conclusions at this stage, I am satisfied that these investments will contribute to the overall aim of maximising the industry's potential to create national wealth and employment. One particular welcome development is the emphasis being put by project promoters on innovation and added value. This will enable further expansion in high value sectors such as the prepared consumer foods one which witnessed a 17 per cent growth in exports in 1995.
The development strategy cannot afford to be and is not a static one. The mechanisms are in place to allow for its review and to take account of changing circumstances. A committee, which includes representatives of the European Commission and the social partners, monitors the strategy's progress. Based on its assessment, the committee may highlight issues of concern and recommend appropriate action. As a result of such recommendations, some changes in detail to the strategy have been effected. For instance, an additional £7.5 million in public expenditure was allocated to marketing and promotion for 1996 to cater for the high level of interest in the initiatives taken by An Bord Bia.
Allied to the above monitoring procedures, the development strategy is subject to independent evaluation. Such an evaluation is currently in progress and will form the basis for a mid-term review of the strategy in 1997. The evaluation will be comprehensive covering implementation to date, the factors that will influence future developments and the possible changes that need to be made.
The events in the beef sector this year have had an adverse effect on the food industry. The development strategy, with its in-built monitoring and review procedures, will take these into account and will have an important role to play in resolving the current problems. I am satisfied that the strategy's fundamental principles of competitiveness, innovation, added value and quality remain valid and must continue to be the foundation of the industry's future development.
