I refer to the article under the heading Direct more funds to local poultry industry, AD says (TMID, 21 March) in which AD spokesman Mark Causon is quoted as saying that more help should be directed towards the local poultry industry and producers should be helped to increase their production.

The Rural Affairs and Environment Ministry fully agrees with this and it is exactly what the ministry is doing. Minister George Pullicino recently announced a scheme for the payment of restructuring aid and marketing aid to poultry processing plants. Part of this aid would be defrayed from funds which had been allocated for the years 2004 and 2005 and which have not been utilised.

Mr Causon said that he is worried by the failure to utilise these funds with the result that the industry is suffering the consequences. Just for the record, the poultry sector received financial assistance to the tune of just under Lm2.35 million during 2004 and 2005, of which egg producers received Lm1.67 million while broiler producers and processors received Lm682,061. Before accession, the poultry sector had already received aid amounting to Lm1.62 million. Surely Mr Causon would agree that the government certainly did not hold back in extending support to the poultry industry, both before and after EU accession.

As for the unused funds allocated for 2004 and 2005, these were intended for restructuring and in fact poultry processing plants received over Lm180,000 for this purpose during these two years. The unused funds were not paid out because there was no further restructuring carried out, and in fact poultry processing plants which did not bother to upgrade their establishment to EU standards, and hence did not qualify for this aid, had to be closed down.

The new aid scheme announced recently is intended to utilise these funds, together with this year’s allocation, to further support poultry processors. The scheme is tied to an undertaking by approved processors (a) to increase their 2006 slaughtering figures by 20 per cent over those of 2005, (b) to make further investment in order to continue upgrading their plant and (c) to promote locally produced poultry-meat. The total aid payable is expected to reach Lm400,000. At the same time, broiler producers will be benefiting from around Lm343,000 in subsidies, while egg producers will receive about Lm772,000.

Randolph Spiteri

Communications Coordinator

Parliamentary Secretariat for Agriculture and Fisheries

Valletta