Thomas Pringle (Donegal South West, Independent)
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To ask the Minister for Agriculture, Food and the Marine if he has any plans to make the creation of jobs a condition of grant aid under the seafood business development and seafood processing schemes operated by Bord Iascaigh Mhara to ensure that the maximum number of jobs are created and maintained in the seafood processing sector; and if he will make a statement on the matter. [6994/13]

Simon Coveney (Cork South Central, Fine Gael)
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Our food industry is a high-growth area of our economy and the seafood processing sector is no exception. The sector has significant potential to increase revenues and employment in the coming years. I have on previous occasions referred to my commitment to ensure the maximum number of jobs are created and maintained in the seafood industry. Both Food Harvest 2020 and the action plan for jobs recognise that most of the potential for increased employment in the seafood industry is in the areas of processing and aquaculture. Food Harvest 2020 aims to increase employment in the seafood sector from the present total of approximately 11,000 to 14,000 by 2020 and to increase turnover from €700 million to €1 billion. The two targets are part of the same ambition to increase the size of the seafood industry and its contribution to our economy. It was the previous Government that put these targets in place, but this Government is happy to implement them and see them through.

Despite the severe effects throughout the economy of the current economic downturn, the processing sector has fared well in maintaining employment. Many progressive businesses in the processing sector have bucked the general trend in the economy and have been on a sustained growth and expansion path. CSO figures show that seafood exports were valued at €495 million in 2012, an increase of 18% from 2011.

I am advised by Bord Iascaigh Mhara that some 2,870 people are currently employed in the seafood processing sector. Arising specifically from an investment of €12.8 million by 18 seafood processing companies in 2012, with €2.6 million in financial assistance under the seafood processing business investment scheme, 296 additional jobs and increased sales of value-added seafood products of almost €105 million are expected to be created by 2015. This is a significant level of investment by any standards. Together with previous investment of €7 million by 21 companies in 2011 and €2.7 million by eight companies in 2010 with the support of the seafood processing business investment scheme the investment is setting a clear path to growth and expansion. I have recognised the success of the scheme by increasing its capital budget from €1.5 million in previous years to €2.5 million in 2013. I realise Deputy Pringle has a specific question on how we aim to prioritise these allocations and I will come back to the House on that.

Thomas Pringle (Donegal South West, Independent)
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I asked this question because, as he will remember, in June 2011 the Minister launched a high level group report in Killybegs which outlined how 250 jobs would be created in the area in the following years in the seafood processing sector. It is remarkably difficult to find out or verify whether and where those jobs are being created. It appears that the grant announcements made are linked to creating a given number of jobs but those jobs are only aspirational and are not really a factor in deciding on grand aid. In fact, it seems more likely to be a nice add-on to any given announcement to say that it will create eight or ten jobs. In truth, that is not the purpose of the grant aid and it has led to a good deal of confusion among the public. There is a significant difficulty in Killybegs, Donegal at the moment because workers there are being paid off in factories and people cannot see where these jobs are being created. There is an issue with transparency and it must be addressed.

Simon Coveney (Cork South Central, Fine Gael)
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The grant aid is given out on the basis of two criteria. We are trying to modernise processing in Ireland to make it more efficient and competitive in order that we can process more fish here and land more fish caught by Irish trawlers and foreign trawlers. These changes are taking place and are evidenced by the increasing export figures.

We are also looking to invest in facilitating the sector that is adding more value to product. This is why I propose to increase the maximum grant rate available under the seafood processing business investment scheme in 2013 from the previous 25% of money spent up to 30%. At the same time, I propose to reduce the grant available to investments in primary processing facilities from the previous 25% to 20%. We are trying to prioritise money into the added-value sector because that is where the jobs are. This will enable us not only to process more seafood product but to add more value to it. This is what we are trying to do in the beef and dairy sectors as well as all the other food sectors and I trust Deputy Pringle will welcome it.

It is difficult to put an exact scheme together based on the number of jobs to be created. From an employment point of view, our figures in terms of growth in Killybegs and elsewhere are based on the projection of the increased number of jobs attached to the investments concerned. That is the only way one can take the matter forward.

Thomas Pringle (Donegal South West, Independent)
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I welcome the fact that the grant aid has increased for the added-value aspect of the investment. This is important.

The dilemma we have seen in the fish processing sector, particularly in County Donegal, is that the greater the investment, the fewer the jobs. I acknowledge the argument that the remaining jobs are more sustainable but it is difficult for those who find themselves out of work because of modernisation to see where the growth in employment will take place. This is a problem with the grant aid process. Jobs are linked to announcements even when the announcement is about modernising plant and equipment rather than job creation. That is where the confusion arises among the public and the people who work in these factories. I welcome that the grant aid is being increased for added value but there needs to be a focus on creating jobs.

Simon Coveney (Cork South Central, Fine Gael)
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The Deputy makes a fair point. There is a concern that when money is invested in processing equipment, the resulting modernisation and mechanisation can reduce the number of people working in the factories concerned. We are trying to ensure that we are competitive as a place to land, process and add value to fish. For example, the landing of blue whiting in Killybegs last year was a significant injection into the local economy. We hope this will continue during 2013 but we also need to find a way of ensuring that instead of simply sending fish landed in Ireland elsewhere in frozen or chilled form for grading and processing, we do that work here. We have the infrastructure and expertise to do the work but we need to continue investing to add value and export higher value products. That is where the jobs will be created. Killybegs clearly could be at the centre of such activities because of its scale and size. This is why the emphasis of the grant has slightly changed to 30% for added value and 20% for general processing upgrades in order to encourage people down the route of added value.