JOINT COMMITTEE ON ENTERPRISE AND SMALL BUSINESS debate -
Wednesday, 19 May 2004

Scrutiny of EU Proposals.

Chairman

When the committee has dealt with EU legislative proposal COM (2003) 799 to amend the basic anti-dumping regulations, we will then hear from the Department of Enterprise, Trade and Employment on another proposal, COM (2003) 689, which is a revised regulation on materials and articles intended to come into contact with food. We will also hear from the Food and Safety Authority of Ireland on that proposal. I suggest that after the briefing we follow our usual format, where members are invited to ask questions. Is that agreed? Agreed.

I welcome the committee's consultant on EU scrutiny, Mr. John Kissane. COM (2003) 799 is a proposal to amend the basic anti-dumping and anti-subsidy regulations. We had originally proposed to have representatives of the Department present at this meeting to discuss this matter. However, it has already been adopted by the Council in March. I wish to get the committee's formal agreement.

Are the members happy with that? Does our consultant wish to make any comment?

Mr. John Kissane

Not really. It is already adopted. COM (2003) 799 is a continuation of COM 380 that we approved on anti-dumping and anti-subsidy. The main provision introduced the single vote. Everybody had one vote and majority voting was the main way for deciding issues, whereas previously abstentions counted. The additional parts introduced were mainly tightening up on deadlines for having investigations completed within a certain time and sending documents to people attending the Council ten days beforehand, etc. These were small issues and tightening up on enforcement measures. However, there is no point in our giving observations on something that is already adopted by Council.

Deputy Callanan

There is a great deal of illegal dumping in Ireland. Does it put any pressure on the Department to clamp down on that?

Mr. Kissane

It is open to any company which is aware of the regulation to take up the matter with the EU if, for instance, they think that stuff from outside Europe is being dumped here. Companies can take up the issue of companies within Europe which might be acting illegally in certain circumstances such as if they are doing something to circumvent regulations. Most companies would be aware of what is there.

Chairman

I wish to get the committee's formal agreement on that. Is it agreed? Agreed.

The second item is the scrutiny of another EU proposal, COM (2003) 689, a revised regulation on materials and articles intended to come into contact with food. I welcome Mr. Conor O'Mahony of the Department of Enterprise, Trade and Employment and Mr. Alan Reilly of the Food and Safety Authority of Ireland who will brief us on the matter. I should remind the visitors that while the comments of the members are protected by parliamentary privilege, those of our visitors are not so protected. Members are also reminded of the long-standing practice to the effect that members should not comment on, criticise or make charges against any person outside of the House or an official by name in such a way as to make him or her identifiable.

Mr. Conor O’Mahony

This regulation updates and improves the regulatory regime for materials that are intended to come into contact with foodstuffs. It is a joint regulation of the European Parliament and the Council. Following its publication by the Commission in November 2003, there appeared to be much support for its early adoption. Accordingly it was given a high priority as part of the Irish Presidency. A number of meetings of the Council foodstuffs working group were held in the period January to March 2004 co-chaired by Mr. Eddie Feehan from my Department and Dr. Bernard Hegarty from the Food Safety Authority of Ireland — FSAI. The proposal was also considered by the environment and industry committees of the European Parliament. A revised text which took account of these discussions was approved by the permanent representatives committee of the Council on 24 March 2004 and by the Parliament on 31 March 2004.

It is expected that the revised text will be formally adopted by the Council of Ministers in the near future as an agreed "A" point, once it has been translated into all official EU languages. The regulation will then come into force on the twentieth day following its publication in the Official Journal of the European Union. I take this opportunity to pay a special tribute to Mr. Feehan and Dr. Hegarty for the great work they did in securing agreement on a complicated dossier in a short period of time and to thank Dr. Reilly for the excellent support and co-operation provided to my Department by the FSAI.

This regulation will apply to all materials and articles that are intended to come into contact with foodstuffs, including packaging materials but also cutlery, dishes, processing machines, containers, etc. Such materials can potentially transfer some of their constituents into the food they contact. In order to protect consumers' health, it is important that the materials are safe and do not transfer their components into the foodstuff in unacceptable quantities.

This proposal involves the replacement of the existing framework directive with a new regulation, which takes account of substantial technological developments in the area of food packaging in the past number of years. The regulation is intended as a general framework for food contact materials and sets out the general principles that should apply to all packaging, such as a requirement for traceability, though there will be a two-year delay before these provisions apply to enable industry to respond; a more detailed, transparent procedure for the safety assessment by the European Food Safety Authority; and authorisation by the Commission of substances to be used in the manufacture of food contact materials.

The regulation also extends the list of materials that could be subject to specific controls, adding active materials which are designed to deliberately add substances to food, intelligent packaging which gives consumers information on the condition of the food, ion-exchange resins, adhesives and printing inks, as well as food contact materials made from recycled materials.

The primary concern, in discussions on the proposal, was over the introduction into the scope of the regulation of certain active packaging systems that are designed to release substances such as food additives into packaged food after it has left the food factory. At present, this packaging cannot be introduced into the EU because the packaging must be inert. Amendments were agreed to specify some principles that should apply to active packaging, for example, that the food industry must be informed of substances that would be deliberately released from packaging and that these would be identified on the label as if they were food ingredients. These should ensure consumers are not mislead about either the packaging or the condition of the packaged food they purchase. Active packaging would only be permitted to release substances already authorised as food additives. Further requirements will be detailed in specific legislation to be drafted later by the Commission.

My Department welcomes the proposal which recognises the technological developments in manufacturing of food contact materials that have taken place such as the development of active and intelligent packaging, while still seeking to protect consumers and public health. I should also point out that a public consultation process was carried out on the proposal, through the FSAI's website during December and January last, although no comments were received as a result. This supports our view that the industrial impact in Ireland is expected to be slight. It probably reflects the fact that major European trade associations and the food packaging industry made significant inputs to the proposal. Their concerns mainly related to the impact of traceability. As the regulation increases the range of packaging technologies that will be available to the food industry, it should facilitate international trade.

The new regulation will require a change to our existing European Communities (Materials and Articles Intended to Come into Contact with Foodstuffs) Regulations 1991 to 2003, to provide that non-compliance with the new regulation would be an offence under Irish regulations and to establish sanctions for non-compliance.

Mr. Alan Reilly

I do not have a great deal to add to what Mr. O'Mahony said. The main role of the Food Safety Authority in shepherding this legislation through has been to support the Department of Enterprise, Trade and Employment on technical and scientific matters and also to run a consultation process. With all new food legislation the Food Safety Authority tries to have an open consultation process with consumers and the industry as the legislation is going through the working group process. I prepared a short account of the proposed new regulation, a copy of which has been supplied to members. Our job is to protect consumer health. We are satisfied with the provisions of this new directive, particularly with respect to the role of the European Food Safety Authority, in approving and scrutinising each new food contact material that comes on the market. The Food Safety Authority works closely with the European Food Safety Authority in setting its agenda with respect to the risk assessments carried out on these food contact materials.

Issues arise that relate to recycling and using recycled packaging material for cool food contact materials. In one case some non-carbon paper was recycled and incorporated into boxes that were used for the transport of food. Materials from the non-carbon paper migrated into the food. We have had incidents in the past where food contact materials migrated into foods. It is an area where strong legislation is needed and this regulation will afford consumer protection.

Chairman

What Irish businesses will be affected by this proposal? Will the list of authorised substances for use in the production of active or intelligent packaging include only tested substances developed after 1981? Has consideration been given to setting eco-design requirements for materials used in active or intelligent packaging?

Mr. Reilly

To my knowledge, most of our packaging material is imported. We do not have producers of packaging materials. The type of active and intelligent material we are talking about would not be produced here; it would be imported. If this type of packaging takes off and is a hit with consumers, it will affect many Irish businesses because they will need to use these packaging materials to keep up with competitors.

Chairman

Is Mr. Reilly saying that could lead to more imports?

Mr. Reilly

Possibly, but Irish businesses compete well and export. If these packaging materials take off——

Chairman

Would it provide an opportunity?

Mr. Reilly

Yes. Let us look at some of the active packaging materials on the market, for example, the widget in a can of Guinness. Guinness was one of the first to come forward with that process to stabilise the head on Guinness. That could be described as an active packaging material. One of the major supermarket chains in the UK is today launching a form of active packaging which will detect when fruit in a sealed pack reaches maturity. All it takes is a small dot on the package to change from red to yellow. One will no longer need to squeeze pears; one can just look at the colour indicated on the dot. Similar frozen food packaging exists where a small spot will change colour if the frozen food thaws out during transport or storage. That will give assurance to consumers that products have not defrosted at some stage and become unsafe. It gives a certain guarantee to consumers and if that catches on, we will see an increase in that form of packaging material. That would have a knock-on effect for Irish industry.

Mr. O’Mahony

Ireland is a major food producer. If these developments can assist food producers to add value, that can only benefit Irish industry. It certainly presents an opportunity for producers to seek to add value and benefit themselves. Perhaps it will also lead to less waste in the food industry. It has the potential to be a positive thing for Irish producers but it will develop over a long period.

Deputy Hogan

This is an important directive. New innovations, directives and legislation have been introduced in recent years regarding the need for products to be traceable from production to the restaurant table. There is a great deal of concern about the lack of traceability on the part of some imported products. It has been said that beef from Brazil and Argentina is being repackaged and sold as Irish beef. What has been done recently in this regard and will this directive have implications for this type of practice in future?

Mr. Reilly

The issue of traceability was one of the key issues for the industry with respect to this directive. This proposal requires a one-up, one-down approach. It really requires a company to maintain a record of who it bought material from and to whom it sold it so that there is traceabilty throughout the food chain. If every manufacturer, food processor and supplier of packaging material kept those records, it would be possible for authorities like mine to trace food and packaging material through the entire food chain.

A new regulation on food law was published last year, 178/2002. This introduced the concept of traceability in terms of the one-up, one-down approach and everybody in the food chain maintaining records of who they bought from and to whom they sold. That is also encapsulated in this regulation. The regulation is very good because, if there are food safety problems, we can trace food throughout the food chain by doing a documentary check.

To answer the second part of the Deputy's question, the Food Safety Authority is currently carrying out audits within the beef, poultry and fish industries. The requirement for traceability will come into effect in January 2005 and we are doing audits to determine how ready the Irish food industry is to meet it. We found some cases of imported beef and salmon having been labelled as Irish. This is an issue for consumers, who should not be misled.

Deputy Hogan

I am glad Mr. Reilly has accepted and informed the committee that there are some beef products and others being relabelled and sold as Irish although they originated outside the jurisdiction. To what extent is this malpractice taking place? What precise action is the Food Safety Authority of Ireland able to take to expose this matter, which is costing an enormous amount in terms of the value of the produce grown or reared in this jurisdiction? Farm and fishery organisations have been highlighting this matter for a long time without anybody taking notice. I am particularly pleased to hear Mr. Reilly say the level of complaint about this issue has been identified in some way.

Mr. Reilly

Where there is a breach of the labelling regulations, one can prosecute the companies involved. I did not know we would be discussing this matter this morning and I cannot state offhand the penalty, but it is specified in our labelling regulations. We could provide the committee with the information required.

We carried out our audit more to seek information than to enforce legislation. We wanted to determine whether Irish industry was ready to implement the traceability regulation. In future, we will take statutory examples when doing this type of work and pass on the relevant information to the different agencies, including the Department of Communications, Marine and Natural Resources with regard to fish and the Department of Agriculture and Food and the ODCA in respect of labelling, and also the health boards.

Deputy Callanan

Is Ireland to the forefront in terms of traceability? Farmers have to adhere fully to traceability requirements but one wonders about the traceability of products after they leave through the farm gate. I feel we must be ahead of many countries in this respect. Will the proposed regulation more or less do away with country markets that sell home-baked foods?

There was a scare over cling film some years ago. Have the fears in this regard been allayed? I am gravely concerned about the safety of food additives and about who is monitoring them. Food now remains fresh for a very long time. In the past, when one pulled apples off a tree they only lasted so long and if one picked mushrooms they had to be sold within a few days or they would go off. I believe "gone off" was the phrase that was used. Now produce seems to remain fresh for a long time.

Mr. Reilly

On the question of traceability, the larger Irish companies are certainly well ahead of the game. The smaller companies may have difficulty. The idea behind our audit was to ascertain the readiness of the Irish industry to implement the traceability provisions of Regulation 178/2002. Traceability is a key requirement when selling foods to the international market. It is to the industry's advantage because a recall of food can be carried out very quickly if there is a problem. This is a key issue with respect to customer confidence.

There was a scare over cling film some years ago. It concerned the microwaving of food covered with cling film. There are two types of cling film, one of which can be microwaved and is designed specifically to be heated. When it is heated, components will not migrate into the food. Ordinary cling film should not be microwaved or heated. Its function is just to keep foods clean. The packaging indicates whether a brand of cling film is microwavable. I believe microwavable cling film is a little more expensive than the other variety.

Deputy Callanan

How dangerous is the other variety if heated?

Mr. Reilly

It should not be heated. Certain components of it can migrate into food. I cannot state the danger precisely; it depends of the length of time for which it is heated and the type of food with which it is in contact. Basically, consumers should be aware of the two types of cling film.

On the safety of additives and the freshness of foods, one sees foods that last longer than they used to, particularly imported foods. Strawberries, for example, used to be in season only in summer but now they can be had at Christmas if one wishes. These strawberries are being imported from countries where they are grown out of season for northern Europe.

There is a form of storage called modified atmospheric packaging, MAP, which allows one to modify the gases in a sealed packet, thus extending the shelf life of the product, especially of fruit and vegetables. The levels of gases such as carbon dioxide can be increased and the oxygen can be removed and this decreases the respiration rate of fruit. The fruit is still living but the rate at which it ripens is reduced.

Some active packaging materials are chemicals that absorb ethylene. When fruits ripen they emit ethylene, which initiates ripening in many fruit. However, these materials will absorb the ethylene which delays the ripening of the fruit. That is the principle behind this regulation. Additives such as E numbers, which are on the market and are used, will have all gone through an approval process at EU level and are safe to use at the levels recommended in that process.

Chairman

The issue of country markets has been raised at this committee in respect of a well-known person in County Clare who was known for baking brown bread. A well-known selector of a hurling team, which was not successful last Sunday, who is also a reverend gentleman, recently made a big issue of this on television. He stated that some regulations went over board. People in Ireland have been renowned for baking soda and brown bread and so on and we are anxious to hold on to our traditions and Irishness in this context. Deputy Callanan asked about country markets which are very important in rural Ireland and are well supported by people in towns and cities as well as in the countryside.

Mr. Reilly

There is nothing in this regulation which will impinge on country markets. The Food Safety Authority has been looking at country markets and working closely with environmental health officers and the health boards to stimulate them. We have developed guidelines for operational hygiene in country markets. We have established an artisan producers' forum which serves as a platform for producers involved with country markets, such as makers of farmhouse cheese and a bread maker as well as some restaurateurs. The dialogue in that forum has examined new proposed regulations which are coming down the track.

Outside this regulation, a number of new regulations are proposed on food hygiene which have been approved. They have gone through the European parliamentary process and will come into law in a couple of years. However, these regulations contain a provision that will allow small food producers to continue to operate because they will not have to comply with the same rigid standards as some of the larger food industries. Therefore, there is a process at national level through which we can develop our own national rules, although we have to inform the Commission of them. We can develop codes of practice and guidance notes for smaller businesses and country markets to operate by, rather than them being put out of business.

Chairman

The committee welcomes this provision and we wish it to be publicised throughout the country. I thank Deputy Callanan for bringing to the attention of the committee this matter, about which we are extremely concerned. This is particularly so in regard to the case of the person in County Clare which was brought to the committee's attention last year. The person in question was renowned for his or her bread making, stating that he or she was born into the tradition, but it was alleged that Mr. Reilly's organisation closed down the business. This issue must be addressed. A certain level of hygiene is required, which we fully support. However, we also want to support the traditions in which we have all been reared and we want future generations to be able to enjoy them.

Deputy Callanan

When one travels abroad and visits country markets, the same restrictions do not appear to apply. We appear to have gone a little over board in this regard and, in that context, I welcome Mr. Reilly's comments about proposals to ease the restrictions.

Mr. Reilly

France is the country we all look to in the context of country markets. Country markets in France operate in squares in town centres or take over car parks on weekends or Wednesday mornings. When the producers come into town, they erect small stalls behind their cars and plug into water and electricity supplies provided by the local authority. The system in France is already set up for country markets to operate but we do not have that system in Ireland. In the French country markets to which the Deputy refers, there are toilets for washing hands and an adequate supply of water and power, all of which is integrated. We do not have that system in Ireland, which is what we would need to kick-start or inject some life into the country markets. We need to provide the infrastructure in towns and villages for them to operate to a good standard of hygiene and sanitation.

Chairman

Is the Food Safety Authority working hand in hand with the local authorities to address this issue and make it possible?

Mr. Reilly

We are in discussion with the Department of Community, Rural and Gaeltacht Affairs on this issue to try to get models established for these country markets.

Chairman

They are hugely popular. There was one last month in Belvedere House and gardens in Mullingar and more than 1,000 people turned up on a Sunday morning. The organisers had to move it to the show grounds last Sunday. There is a huge demand and people want to be able to get their fresh produce from the people who produce it.

Deputy Murphy

The issues I wished to raise have been eloquently covered.

Chairman

The Deputy is happy. I thank Mr. O'Mahony, who has escaped lightly this morning, and Mr. Reilly for coming to assist the committee on this EU directive at such short notice. We are grateful.

Deputy Hogan

Does the Chairman wish to deal with the recommendation?

Chairman

I am coming to that, Deputy. Is the recommendation agreed? Agreed.

The joint committee went into private session at 10.20 a.m. and adjourned at 10.25 a.m. until9.30 a.m. on Wednesday, 16 June 2004.