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Dáil Éireann debate -
Thursday, 17 Apr 1980

Vol. 319 No. 8

Plant Varieties (Proprietary Rights) Bill, 1979: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

I would like to say a few brief words on this Bill and I will not detain the House and the Minister very long. Although it might appear that this Bill is primarily or even exclusively of concern to people who might identify more closely with the agricultural sector than with an urban area, there are dimensions of it which give national concern. As our spokesman, Deputy Bruton, has already pointed out, possibly the Bill is necessary in order to give certain protection for people involved in research and development in that area, but obviously a word of caution needs to be brought into the debate in order to ensure that any tendency towards monopoly of exclusiveness with regard to proprietorial rights of ownership of genetic diversity in seeds would be guarded against. The experience of Third World countries in this regard or with regard to the exploitation which some of them have suffered from multi-national conglomerates who have abused the privileges which this type of legislation has allowed them to avail of should teach us to be very wary about legislation which is fundamentally restrictive or which would tend to curb rights to the freest possible access to the freest possible standards of enterprise or basic independence.

Therefore, this Bill has to be dealt with very gently from this point of view and with a certain amount of concern. Accordingly, an attempt must be made to underline that concern in the Bill, perhaps necessarily by way of amendment. This type of legislation under some circumstances can give undue power of an unnecessarily restrictive nature to organisations and interests whose concerns may be far removed from the concern which is at the heart of the Minister's Bill. We have access now to new insights and new experiences arising from the heightened focus of attention which Third World countries are experiencing at present and which show that many of the apparent improvements and innovations of a technological or developmental nature, often imposed from outside and often without regard to local culture or local agricultural—or even in some cases demographic— implications, can be more damaging than good. Accordingly, we must understand that this is not just simple technical legislation. It could under some circumstances be argued to embody a basic principle, that of the right of people to develop, to research, to experiment and to own the seeds of the earth which, after all, are the heritage of every man and woman regardless of nationality or colour.

I have no doubt that this House would act sensibly to ensure that these concerns would find expression in amendments if necessary which would ensure that the kind of excesses and exploitation that we are talking about would not occur. The Minister knows that some voices have been raised in opposition to a principle. They are timely in the sense that they alert us to the kind of abuses to which this sort of legislation could lead. People who spend years in this area of research are entitled to certain protection and guarantees, but we can endeavour to insist that these minimum safeguards which are seen to be necessary should never become a source of manipulation by perhaps much greater conglomerate interests than the kind of individual whose concern is at the heart of this Bill would suggest. If, for example, a situation were to be potentially possible where a virtual monopoly with regard to genetic diversity in seeds or specific of variety of seeds would allow a pricing structure to be dictated by individual companies or by a small cartel of companies, clearly it would be much to the detriment of not just the Irish grower, developer, farmer and citizen but to the interest of the whole nation.

These safeguards are not yet insinuated into the Bill as fully as some of us would like. Apart from the basic question of ensuring safeguards, there are other perhaps subordinate but, nevertheless, important elements to which it is appropriate to draw attention and I would be grateful if the Minister would refer to them in his concluding remarks. For example, what are the administrative costs of the Bill and who is to pay them? Is it those who would benefit from such an innovation who would be expected to contribute? Could these administrative costs in some cases be unhelpful to the growers whom evidently the Minister is endeavouring to protect? Would there be specific evaluation of individual cases which would allow for flexibility in relation to the administrative costs?

Also, it is important that we ensure that in our endeavour to protect the domestic situation we do not precipitate a situation which would encourage the royalties from such seeds to flow out of the country or into the coffers of large companies. It is not that we have anything in principle against large companies, but the kind of moneys to be made from intense experimentation and development in this area and their application and assignation are matters of concern, and we should be able to give reasonable estimates of the outcome of the benefits accruing from this legislation in the course of the discussion we are having here on the Bill. I understand that the Minister has not yet taken the opportunity to advert to these matters of finance which it would be appropriate to consider. Obviously, it would be less than appropriate if this House was to spend undue time in considering legislation which might do little more than give a substantial bounty or bonus to the coffers of multi-national companies far removed from these shores. These aspects of the Bill are important.

While the Minister is talking in financial terms, perhaps he might also mention if any fee which is charged in the context of this Bill will be index linked or keep pace with inflation in some other way as an analagous fee structure in the Patents Office. This does not appear to have been done.

I wish to endorse the views of our spokesman, Deputy Bruton, in this area who put our party view on the record. I simply rose to express concern that this type of legislation in some circumstances could become a weapon of exploitation rather than the enlightened law reform measure which I know the Minister wishes to have. The experience of some Third World countries clearly indicates that we have something to learn in that regard. Perhaps the Minister might do us the courtesy of commenting on the couple of points I mentioned.

I should like to thank the Deputies who contributed to this very useful and informative debate. I am very pleased to note that there is general agreement with the objective of the Bill which, when enacted, will put our plant breeders on equal footing with their counterparts in other UPOV countries. Agriculture is much too important to us to allow any of the services to the industry to be disadvantaged vis-á-vis our competitors. For too long our plant breeders have not been able to enjoy the advantages afforded by this kind of legislation. When this Bill is enacted it will provide reasonable protection for their rights in respect of any new plants they may create while at the same time require them to maintain certain standards as regards quality and so forth.

With regard to the urgency for this Bill, this stems from the necessity to safeguard our new plants and to secure our use of foreign varieties. I propose to reply to a number of the points made during the course of this debate. As regards beneficiaries of the legislation, this Bill will benefit farmers, breeders and the country generally through the availability of improved varieties, protections of Irish-bred varieties and through better access to foreign-bred varieties. At the moment we have access to foreign-bred varieties because we have been attending UPOV meetings and were considering joining. If we ever have to withdraw we are satisfied that it would be very unlikely we would continue to be accommodated in this way. We have already experienced some difficulty, in fact, in the potato sector.

With regard to external association up to the present time we have, in effect, been operating on this basis but for the reasons already given are satisfied that we must now join UPOV. There are no provisions for derogating in part from the UPOV Convention and still becoming a member state. Up to the present we have, in effect, been operating on this basis but for reasons already mentioned we are satisfied that we must now join UPOV.

Compulsory licences were mentioned by some of the speakers during the course of the debate. The experience in the other UPOV countries has been that the existence of this provision has acted as a deterrent. Under this provision the controller can issue a compulsory licence and attach any conditions he thinks suitable and if any complaint is received that a breeder charges excessive prices or in any way imposed unrealistic or restrictive conditions and this is sustained, a compulsory licence may be granted. In the United Kingdom only one compulsory licence had been granted in 16 years. The experience in relation to patents has been similar. Only a handful of applications for compulsory licences have been received. There is no known evidence in Ireland or elsewhere that either complexity, difficulty or proof has deterred people from applying.

I understand the worry of Deputies Bruton and Bermingham about the rights given to breeders. I would also worry if I saw them as a monopoly but I am satisfied that the compulsory licensing provisions can be operated to counter this effectively. By joining UPOV we would with other member states have a voice in monitoring developments and evaluating the position in the light of our own and other members' experience.

With regard to the exclusive right to use the variety, while there must be reasonable organisation of the marketing outlets to ensure the breeders' royalties, there must also be close organisation to enable the breeder to control these so that he in turn can meet his obligations of maintaining the reproductive material up to the standard on the basis on which he got his rights. The exclusive rights are for 15 years. This is the minimum period allowed under the UPOV Convention. This also is reasonable because often it takes up to five years from the time rights are granted for a variety to take off commercially and the financial returns in the early years can be poor.

There is also a provision in the Bill for fixing a maximum period and this will be by regulation under section 4 (10). The basic UPOV idea includes plant breeders' rights for hybrids and these are provided for in other UPOV countries. I consider this reasonable, because a breeder may have gone to considerable trouble and expense to develop a hybrid and he is deserving of equal treatment with his counterpart who develops a new plant.

The Bill provides for the protection of the rights of the breeders of the parents of the hybrids. However in many cases it is probably unlikely that the breeder of the hybrid will seek rights. This has been the experience in countries where this kind of legislation already exists. There are dangers in concentrating on highest yielding varieties. While I am unclear about the connection between this and plant breeders' rights, I am satisfied we have nothing to fear from availing of the high yielding varieties being created. If we were not to avail of them, we would soon find that Irish farmers' yields were way below those of their competitors. If we are to remain competitive we have no choice but to use the best seed available. Before a variety may be sold as seed here, it must have been cleared under a national seed certification scheme and must satisfy EEC standards.

As regards a reduction in the number of plant varieties, there is no direct connection between the number of plant varieties extant and the existence of plant breeders' rights. It is a fact that member states have been moving progressively towards an EEC common catalogue for plants and that many synonyms used to denote plants are being dropped. As many as 20 of these have been used at some time for some plants. This was most confusing for the purchaser. These are now registered under the one name. The number of distinct varieties dropped from the catalogue has been insignificant and, indeed, many new ones have been added. In 1972, we in Ireland had two varieties of barely in use. We now have 19 available and registered in the national catalogue as suitable for this country. The number of varieties of spring wheat has also increased substantially over the same period.

The possibility of a foreign takeover because of plant breeders' rights and maintenance of public funding was also mentioned. This legislation will attract foreign plant breeders to Ireland, because they can be satisfied that the right to new varieties they might create will be protected under this legislation. We would be very pleased to see more plant breeding done here, particularly by Irish interests. We would not or could not exclude foreign plant breeders. In introducing this legislation it is not the intention to reduce the level of Exchequer assistance for plant breeding.

Fees obtained by the controller were mentioned by Deputy Keating. In the early years the controller's office received application and examination fees only and was unlikely to be self-supporting at that stage. Later it collected fees and renewal fees. The intention is that, in time, it will be self-supporting in its day to day operations.

What does the Minister mean by day to day operations? Does that include staff costs?

I would expect so.

What would it not include?

I am not sure. The contribution to UPOV, I suppose, and buildings and fixed assets. At present royalties are received on some Irish-bred varieties which are registered in the United Kingdom. Royalties are paid on imported protected varieties, which constitute a large proportion of our seed imports. With regard to the possibility of a rise in the price of seeds because of plant breeders' rights, it could be argued that the existence of plant breeders' rights in other countries has meant that because of royalties there have been consequential increases in the price of seed. We have had to pay these, even though we had no plant breeders' rights system. The proposed legislation will not affect the royalties situation. Most seed imported into Ireland is covered by plant breeders' rights, and a significant amount is payable in royalties by Irish farmers each year. This legislation will mean that Irish plant breeders will enjoy the same facilities as their counterparts in other countries, including the right to charge royalties and security in their right to them.

On the question of wild plants, if a person applies for and is subsequently granted plant breeders' rights in respect of a wild plant, all this means is that the person has rights in respect of its commercial propagation. It does not mean others can no longer enjoy it. Indeed, they can continue to take samples with a view to propagating it. The only thing they cannot do is to propagate it commercially. To apply for plant breeders' rights, a person would have to be in a position to submit a quantity of the reproductive material, anything from one to eight kilos depending on the species. If rights were granted in respect of a wild plant, propagating material previously unavailable would be on sale to the public. The initiative of the person granted the rights would be rewarded, but that person could not simply pick up a wild plant and send it to the controller with a view to obtaining plant breeders' rights.

With regard to the number of staff tied up in testing, the work arising following an application for plant breeders' rights should not create problems. We would always have the option of doing the testing ourselves, or having it done by arrangement with another UPOV country at a fee to be recouped from the applicant. This could hold either for initial tests or tests already in existence. In the latter case, it is likely that we would purchase the test report. A decision as to whether we should do the tests ourselves would depend on the circumstances in each case. We would be influenced by such things as the variety, whether it was being registered for the first time, or whether it was already widely in use here, in which case it is likely that we would buy the test result.

The UPOV Convention provides that contracts may be concluded between members with a view eventually to having members specialise in the testing of particular varieties. This would dispense with the need for members to assemble the full range of necessary reference collections, and so on.

On the question of the manipulation of Third World countries by nationals and the FAO position, the suggestion that multi-nationals involved in plant breeding might abuse their position in an attempt to create a market for their other produce, that is, pesticides, does not hold water. Plant varieties come under critical examination by public authorities for resistance to disease, pests, and so on, before they are approved for marketing. The improvement of plant varieties has played, and is continuing to play, a very important part in providing food resources in the Third World.

Is the Minister satisfied that Third World countries are capable of doing the testing necessary to ensure that seeds are not marketed in their jurisdictions which do not meet the criteria?

I am satisfied that they would be capable. They would have to be up to the standard laid down by the other UPOV countries.

Some of these countries are miserably poor. They have not got the facilities for doing this testing.

It is important that they should have the best variety of seed available to them. This would help them to increase their production of food in many ways.

They might be sold a bum steer.

We can debate these matters more appropriately on Committee Stage.

The FAO have not expressed any opposition to the concept of plant breeders' rights. I understand that an individual employed by the FAO has expressed opposition to the concept on a personal basis. Indeed, it is only natural that this would happen. An attempt has been made recently, in the press and elsewhere, to discredit the internationally accepted system of plant breeders' rights. A number of grossly inaccurate statements have been made, such as that the system is against the best interests of the Third World, that it is a factor in the decline of world genetic resources and that it is being promoted by multinational companies to increase their sales of agro-chemicals. None of these contentions stands up to critical examination. We can look at the experience in Britain where legislation like this was introduced in 1964. Third World countries have been able to avail of many of the advances in plant breeding and the existence of plant breeders' rights has been a major factor in providing an incentive to breeders to improve plant quality, with the consequent dramatic increase in food resources in many less developed countries. No link has been established between the existence of plant breeders' rights and a decline in genetic resources. While a number of multinational companies are involved in plant breeding, much of this work is still undertaken by Government or semi-Government bodies.

The fact that a dealer is accorded rights under this system simply means that if the new variety of plant is successful he is assured of a fair return for the work he puts into breeding that variety. At the same time the breeder is required to ensure that the standard of future supplies of the reproductive material is maintained. There is no obligation on any person to purchase a variety for which rights have been granted and the granting of rights to a new variety does not force any existing variety off the market. Existing material will continue to be demanded in so far as it meets the needs of the purchaser. Many of the old varieties we hear about as being lost are not separate varieties but simply synonymous.

These remarks cover most of the points raised during the debate.

The Minister mentioned that compulsory licensing has not been availed of in Britain or in many of the countries where it has been inserted in legislation as an alleged safeguard against abuse. He thought there was no evidence that this was because of the complexity of the provisions for applying for a compulsory licence. Would the Minister investigate more fully between now and Committee Stage the exact reasons that this facility has not been used? We should know this so that we can reach a mature decision as to whether the provisions of the Bill are sufficient.

Yes, I can do that. It is a very important safeguard in the Bill that if a breeder is abusing his rights or charging excessive prices the controller has the option of issuing a compulsory licence. Since the legislation was introduced in Britain 16 years ago only one compulsory licence has been issued. I will try to ascertain if there are any specific reasons why more compulsory licences have not been issued.

Question put and agreed to.
Committee Stage ordered for Wednesday, 30 April 1980.
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