Written Answers. - Price Levels.
Bernard J. Durkan
Question:
96
Mr. Durkan
asked the
Minister for Agriculture and Food
the degree to which he has monitored the difference in the prices being paid to the producer and those charged to the consumer; and if he will make a statement on the matter.
[4202/03]
Bernard J. Durkan
Question:
97
Mr. Durkan
asked the
Minister for Agriculture and Food
the reason for the dramatic difference between the prices paid to the producer and those charged to the consumer; and if he will make a statement on the matter.
[4203/03]
I propose to take Questions Nos. 96 and 97 together.
While my Department monitors the prices paid at producer level, it has no direct role in monitoring the differential between the producer price and the prevailing price paid to the consumer at retail level. I am, however, fully aware of concerns expressed that the gap between the price paid to the producers and the corresponding price paid at retail level by the consumer is excessive. There are a number of complex factors, which have contributed to this variation in producer and consumer prices. However, as we operate in a free market economy, I have no role in determining the level of domestic prices charged in the marketplace. Single market rules dictate that products must be traded freely in the marketplace and governments do not have the power to influence the levels of mark-up at different stages of processing and sale. The Competition Authority established under the 2002 Act does, however, have a statutory role in relation to ensuring that markets operate freely and this includes the retail sector.
One of my main priorities is to assist the development of agriculture and to seek the best possible supports in order to ensure adequate returns for the farming community. In 2003, my Department is providing €2.8 billion in public expenditure to support the agriculture sector, of which €1.6 billion will be paid in direct payments to farmers. It should be recognised that direct income payments now support farmers' incomes to a very considerable extent providing almost 70% of aggregate farm income. I also recognise that producers must be rewarded for providing the safe, quality and wholesome food that consumers demand. As with other sectors of the economy, the farming community is entitled to maximise returns from the marketplace.
In this regard, my Department is fully committed to assisting the industry in improving its competitiveness and market orientation. In the national development plan, we are providing significant funding to meet the needs of the industry. Specific food related initiatives are being implemented to improve efficiencies at primary slaughtering and processing levels and to encourage progress along the value-added chain. These initiatives are designed to enhance the innovative, marketing, and human resources capabilities of the industry and their primary goal is to enable the producer to compete successfully in a rapidly changing and evolving marketplace. It is anticipated that this substantial investment will increase sales by €2.5 billion by the end of 2006. At export level, we will continue to assist Irish producers, processors and exporters, in winning new markets world-wide.
