asked the Minister for Agriculture and Food if he proposes to introduce regulatory legislation for the food industry with particular reference to rationalisation in preparation for 1992; if he intends that mergers, takeovers, restrictive practices and predatory pricing are likely to be included in any of his deliberations on the industry; if he will outline his proposals for the industry; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Preparation for 1992.
6.
The food industry is subject to the same legislation as industry in general. I have no indication that the existing legislation is in any way inadequate and I have no plans to introduce legislation which would apply exclusively to the food sector either to regulate rationalisation or otherwise. The question of rationalisation is, or course, primarily one for the industry itself to address in the first instance.
The general legislation governing mergers/takeovers and other matters referred to by the Deputy is the responsibility of the Minister for Industry and Commerce. The Government's proposals for the development of the food industry are set out in the Programme for National Recovery, the Strategy for the Food Industry 1989-1992, prepared by the IDA in consultation with my Department and the recently published National Development Plan, 1989-1993.
In view of the pivotal role likely to be played by the food industry in the development of exports, would the Minister not feel it advisable in preparation for 1992 to at least consider some regulatory legislation so that the essential role the industry are likely to play would be provided for and safeguarded?
Since all industry is affected by rationalisation which is part of the ongoing development of business, it would not be advisable to introduce legislation which would inhibit this rationalisation. I have asked the State agencies involved, the IDA, CTT, SFADCo and so on, to make all their resources, advice and direction, available to the food industry along the lines of the strategy for the development of the food industry for 1989-1992, so that we will have an internationally competitive industry here.
Would the Minister agree that in the event of developments prejudicial to both producer and consumer in this country and consequently to our economy, it would be more opportune to consider laying down guidelines now rather than responding to events which might overtake him at a later stage? Has the Minister considered something similar to the national milk agency in relation to the food industry? If he has, perhaps he would elaborate further on that.
The guidelines for the development of the food industry are clearly laid down in the national plan for the development of the food industry produced by the Department of Agriculture and Food and the IDA. The main agency supporting the development of the industry is the IDA along with FEOGA. The guidelines for grant aid and support are clearly laid down.
Does the Minister agree that the apparent inactivity in his Department and the Minister's attempt in his reply to pass the buck to another Department all giving rise to a situation where the co-ops are going out of existence and the type of work available in the industry is being reduced to what is generally known as yellow pack work. This work is not done by workers but by a type of contractor, and without all the protections required. Would the Minister not agree that it is time for his Department to take measures to protect the co-operatives and the workers and that he should not pass the buck?
I do not agree with the thesis of Deputy Stagg in relation to the development of the food industry, particularly the co-operatives. We have here some of the most progressive co-operatives in Europe. For example, Kerry Co-op are not alone active in Ireland but in Europe and in the United States as well. So are a number of the other co-operatives. At no time in the history of the State have we had such a progressive and aggressive co-operative industry. We had recently some well publicised and highlighted activities of co-operatives and private industries——
Westmeath, for example.
——which is a different matter altogether. Essentially, I am quite satisfied that our co-operatives are well able to take care of themselves in the competitive environment which now exists.