Ireland's consumption of potatoes is the highest per capita in Europe but far more vegetables are still imported than exported, the Dail was told. Fine Gael's agriculture spokesman, Mr Hugh Coveney, warned that the horticultural industry faced a "tremendous challenge" in persuading multinational chains such as Tesco and Marks and Spencer to buy their food produce in Ireland.

He was speaking during a debate on the annual report of An Bord Glas, which markets Irish horticultural produce.

Mr Coveney said that although Ireland would always have to import vegetables because of seasonal factors, the trade balance was not satisfactory. "We must produce more of our own field vegetables and import less."

He pointed out that Ireland had "a very negative trade balance in seed potatoes, of which we import more than we export." Mr Coveney said the chains got their supplies in the UK and Irish producers would have to work very hard to convince them that "they can obtain an equally acceptable or better source of supply here".

In the UK the chains could "get exactly what they want in the volumes they want when they want them". This was a "tremendous challenge" to Irish producers. Representatives of An Bord Glas were meeting Tesco and other chains, "but they are very demanding customers whose general trend is to cut out wholesalers and go direct to producers."

The Minister of State for Agriculture, Mr Noel Davern, said that almost 60 per cent of the retail market was controlled by multiples which were introducing central distribution and supplier rationalisation strategies.

Mr Davern said the sector had performed well in Government development plans. Exports reached £45 million over a fiveyear period - 75 per cent of the target of £60 million. Employment had also increased, particularly in the parttime sector. The development plan envisaged the creation of 1,800 full-time and 1,500 part time jobs. Full-time employment rose by 700, and 6,100 part-time jobs were created.

Mr Coveney called for an increase of up to £2.5 million in State spending for the promotion of Irish horticultural produce. He said the industry was worth more than £220 million, and while he was slow to suggest spending more taxpayers' money, spending 1 per cent of £220 million would be modest for such important work.