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Competitiveness, Continuous Improvement and LearningCouncil reconfirms its belief expressed in its 1999 Strategy thatpolicy should be balanced and equitable in terms of the treatment ofurban and rural areas.Much of what has been categorised as rural development in facttakes the form of an agricultural based payment such as the RuralEnvironmental Protection Scheme or payments for forestry. The keyto ongoing rural development lies in diversification of activity awayfrom traditional agricultural activity. Such activities include thegrowing market for rural based tourism discussed below whileothers include diversification into energy production, organicproduction or specialist food production such as farmhouse cheeseor high quality preserves. However, many of these are inherentlyniche sectors with small markets and the key to sustainable ruraldevelopment will lie more in the ability to foster small scaleindustrial development through targeted supports and thedeployment of the necessary infrastructure.Agriculture – ConclusionsThe Council supports the need to develop a profitable and competitivelyviable agriculture and food sector. The Council believes thatthere is substantial capacity in the twin policy pillars of ‘price andmarket’ and ‘structural’ policies to deliver ongoing development ofthe sector. In particular the Council supports ongoing Governmentintervention through research and advisory services, includingprogrammes of agricultural training, to further improve competitivenessand measures to support increased diversity in rural andagricultural development combined with enhanced environmentalsustainability.10.4.7 Sectoral Development Policies: TourismGiven the climatic conditions and its relatively peripheral position,Ireland has traditionally ‘punched above its weight’ in the tourismindustry. Tourism is a significant employer in Ireland, sustainingclose to 140,000 jobs, up from 82,000 in 1990, and it is estimatedthat the hotels and guesthouses sector alone contributes 2.2 per cent573