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Dáil Éireann debate -
Thursday, 28 Oct 1993

Vol. 435 No. 2

Ceisteanna — Questions. Oral Answers. - Establishment of Food Board.

Pat Rabbitte

Question:

9 Mr. Rabbitte asked the Minister for Tourism and Trade if, in view of the proposed establishment of An Bord Bia, he will give the steps, if any, that are being taken to avoid fragmentation of the effort with regard to the promotion of Irish food exports; the relationship Bord Tráchtála will have with An Bord Bia; and if he will make a statement on the matter.

Martin Cullen

Question:

25 Mr. Cullen asked the Minister for Tourism and Trade the way in which it is proposed that An Bord Bia and An Bord Tráchtála will co-ordinate their activities in relation to Irish food industry exports; and if he will make a statement on the matter.

I propose to take Questions Nos. 9 and 25 together.

I can assure the Deputies that the legislation establishing An Bord Bia, when it is published by my colleague, the Minister for Agriculture, Food and Forestry, Deputy Joe Walsh, will reflect fully the Government's commitment to ensuring that there is no fragmentation of the State's efforts in support of food industry exports.

My own overriding objective, and that of the Minister for Agriculture, Food and Forestry, will be to produce a flexible State agency structure which will best assist the food industry to maximise its contribution to the economy in terms of wealth creation, exports and jobs but which will also secure the best value for money for the State's investment in support and promotion.

I put it to the Minister that he does not believe a word of what he has just read out. Surely the Minister agrees that it is plain daft to further fragment the overseas drive in the manner proposed by the setting up of An Bord Bia. How can a Government that says it has implemented the Culliton report fly in the face of a very specific recommendation of the report in this area. If I were permitted to do so, a Cheann Comhairle, I would quote it, but presumably the Minister knows it. It flies right in the face of Culliton's recommendations and our overall exports drive will suffer from the inevitable fragmentation.

The Bill setting up An Bord Bia is being drafted in consultation with my Department to ensure that there will not be the fragmentation the Deputy fears. This board is being set up under the remit of the Minister for Agriculture, Food and Forestry to focus on the food industry but not cut across the promotions of An Bord Tráchtála and my Department and our emphasis on increasing foreign areas. I hope when the Bill is published the Deputy will see the logic of it.

There are many aspects to the Culliton recommendations. It will be remembered that Culliton did not recommend the setting up of a separate Department of Tourism and Trade. However, the Government is entitled to make its own decisions in this regard and An Bord Tráchtála remains in the remit of my Department, the setting up of which was not recommended by Culliton, as the Deputy has pointed out on many occasions in this House. We will await the publication of the Bill setting up An Bord Bia. The agencies will not cut across one another and there will be co-operation between An Bord Bia and An Bord Tráchtála.

Is it not the case that Culliton recommended one strong cohesive agency for market development overseas? Is it not the case that the Minister's own party supported that position? Now, apparently, every Government Department must have its own quango, its own agency. What advice, if any, has the Minister sought from An Bord Tráchtála? What is the attitude of the board that is charged by the State with marketing our indigenous industry as a whole?

As many Deputies have pointed out, we have departed from some of the ideas of Culliton. Culliton recommended the setting up of a monster agency incorporating An Bord Tráchtála. The Government decided not to proceed along that road. It was decided to leave An Bord Tráchtála with the Minister for Tourism and Trade and, as I said earlier, Culliton did not recommend the setting up of that Department. In drafting legislation to set up An Bord Bia cognisance will be taken of the concerns expressed and the ideas put forward by my Department and An Bord Tráchtála. It is the intention not to have fragmentation of effort.

Will the Minister explain where the line of demarcation between An Bord Tráchtála and An Bord Bia will lie? For example, would alcoholic drink exports fall under one agency and milk exports under the other? How can the Minister possibly justify two organisations marketing consumer goods internationally while wearing different hats?

I recognise the difficulties that might arise and that is why we are being careful to ensure that we do not have that kind of fragmentation. I agree it would be foolish to have fragmentation of effort. There will be co-operation between An Bord Bia and An Bord Tráchtála to avoid that problem. I do not want to take over the role of the Minister for Agriculture, but he would say that there are compelling arguments for having a separate board responsible for the food industry. That was recommended by an expert group set up some time ago which recommended the establishment of An Bord Bia to deal exclusively with the food industry. However, we will await the legislation and I hope the Deputy will be pleasantly surprised to find that there will be no fragmentation, which, like the Deputies over there, I do not want either.

The Minister referred to an expert group. Does the Minister, as Minister for Trade, not acknowledge the validity of the case made by one member of that group, Senator Feargal Quinn, when he argued that what we were doing was setting up an agency for farmers rather than an agency for food production, sales and exports? Is it not what we are doing? Are we not conceding to the farmer's lobby and the Department of Agriculture when it is the Minister's job, as Minister for Trade, to co-ordinate our export drive abroad without this fragmentation and competition, which in the view of most experts will only damage our national effort?

I am aware of the minority report put forward by Senator Feargal Quinn in the export group to which the Deputy refers. The Government decided that An Bord Bia should be set up and that legislation will be brought forward shortly.

Would the Minister agree that because of impending increased competition for market space and our low penetration in the market at present, it is vitally important to the national interest that we have a focused marketing drive there irrespective of who is selling products abroad?

I agree with the Deputy. The reason for setting up the Department of Tourism and Trade was to give a new focus to our promotions abroad and realise their maximum potential. CBF have a presence abroad regarding food and An Bord Tráchtála carry out some activities as well. It is hoped that the new Bord Bia will be able to liaise with An Bord Tráchtála to focus in on the markets. It is not intended to adopt a fragmented approach.

In response to points put forward by Deputies on the other side of the House in regard to the Culliton report, one has to say that if the logic of the ideas put forward by various speakers were to be followed to its conclusion one would end up with one big Government Department and it would be impossible to carry on business in such circumstances. It is not the intention that there will be duplication or fragmentation of effort which would not be in anybody's interest. There will be co-operation between An Bord Tráchtála and the new Bord Bia.

This is an important issue. Does the Minister not accept that far from creating one big department — we are talking about a relatively small country — most expert opinion suggests that we need one strong cohesive agency for market development overseas? What the Minister is apparently supporting in a luke warm way runs in the face of that. What advice did the Minister get from An Bord Tráchtála and does he agree with that advice? Is it not the case that he lost the battle in Cabinet, that he was dwarfed by the Department of Agriculture and as a result the overall national effort will suffer? It is a silly concession for us to make at this stage considering the desperate unemployment problem that confronts the country.

The majority of the expert group examining this matter supported the setting up of An Bord Bia. A significant contribution was made by Senator Feargal Quinn who took a different view of the matter. The Government took into consideration all the points raised and it was decided to set up An Bord Bia.

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