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Dáil Éireann debate -
Wednesday, 24 Feb 1988

Vol. 378 No. 4

Ceisteanna — Questions. Oral Answers. - Milk and Dairy Products.

4.

asked the Minister for Agriculture and Food whether a co-ordinated and overall plan has been formulated for the production, transport and marketing of milk and dairy products at home and abroad; on whom overall responsibility for such matters will rest in the future; the role An Board Bainne will play in this process in the future; and if he will make a statement on the matter.

Responsibility for production, transport and marketing within the dairy sector is ultimately a matter for the industry itself. Responsibility for planning in these areas lies also with the industry though every encouragement and assistance possible will be given by my Department and the other State agencies involved. I am pleased to note that discussion is currently taking place within the dairy sector on the type of structures best suited to the years ahead. Whatever the final outcome of these discussions, I am fully confident that An Bord Bainne will continue to play a central role in the export of Irish dairy products.

Following the rationalisation which is taking place between the co-operatives, what role does the Minister envisage for An Bord Bainne in the export field having regard to the fact that the industry has expanded in recent times? Will there be a co-ordinated approach on the foreign market, or will there be an open arena where producers, co-operatives, or other interests will operate under their own aegis?

ICOS, the umbrella organisation for the dairy sector, have issued recommendations in respect of rationalisation and there are moves taking place in the management and ownership in the dairy sector which are in line, it would appear, with current trends in the market. An Bord Bainne, who are not a State agency, have the promoting role and, as can be seen from the last question, they have been very successful in this area. It may be that some interests under the new re-organised dairy sector may want to pursue their own markets, or it may well be that the bulk of them, as hitherto, want to do it through An Bord Bainne. I do not see any conflict there. I know An Bord Bainne are looking at their management structure on an ongoing basis. From my experience of them, they have the benefit of the most professional sales team on the world market.

Does the Minister see any conflict of interest between, for instance, competing interest groups exporting on the foreign market as against a co-ordinated approach by a single body?

The Deputy will appreciate that when dealing with a free market economy, unless we totally regulate everything, and everything has to be sold by the State or through the State, we can never avoid competition. Of course, that competition can have healthy consequences but sometimes a level of co-ordination is desirable in the interest of the promoters and the national economy. I think the balance is about right now and I hope it continues.

In view of the latest arrival on the dairy scene, the Goodman International Group, does the Minister foresee a conflict between a private group like that and An Bord Bainne and the remit they have for international marketing?

The Deputy will have noticed that up to now I have refrained from making any comment on that issue and I am not going to make a comment now. I do not see that competition necessarily involves conflict.

I like competition as much as the next person but, as Minister for Agriculture and Food, where would he stand if that dogfight developed on the foreign markets?

That is a hypothetical question.

But the Minister does not have a hypothetical answer.

Would the Minister not accept that ICOS were out of turn in making comments on what should or should not have happened? In fairness, did their comments not erect a barrier which should not be there? That body should be representing all the dairying industry, regardless of whether or not they are private.

I respect Deputy Farrelly's right to make that comment and I am sure he will respect my right to refrain from commenting.

Question No. 5.

I am calling the next question. Progress is very slow today.

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