I welcome the Minister of State, Deputy O'Keeffe, to the House.
Bord Bia Annual Report: Statements.
I am coming here regularly. It is a very homely place.
The Minister of State is very welcome here.
He should not get too comfortable.
I served my time here. Thank you, a Chathaoirligh, and Members for making time available to debate the Bord Bia annual report. Under the An Bord Bia Act, 1994, the board of Bord Bia is required to submit an annual report and accounts to the Minister for Agriculture and Food who, in turn, is required to lay this document before the Houses of the Oireachtas.
Credit must be given to the Taoiseach and Tánaiste who, by recognising the central role of the food industry to our greater economy, reestablished the office of food under the action programme for the millennium. Undoubtedly, such political direction is a prerequisite to policy success.
In 1992 my colleague, the Minister, Deputy Walsh, set up an expert group on the food industry and charged it with the task of drawing up a development programme for the industry. The group made two main recommendations in its 1993 report: first, that a separate programme for the food industry be established under the 1994-9 round of Structural Funds and, second, that a new single agency be set up to deal with promotion and market development for food.
In framing its recommendation for the establishment of a single food promotion agency, the group took account of an earlier finding and recommendation by the Culliton group that existing arrangements for food promotion and market development were fragmented and that there should be greater integration and co-ordination in the marketing of Irish food abroad.
In this connection, the 1992 food group also noted that, irrespective of the product involved, the selling of food has many elements which are not normally shared by non-food products. Food is readily identifiable with its place of origin, a factor which enables a country or region with a good environmental image to exploit such a reputation. Also, many of our main competitors in other EU member states work through single national agencies.
Both those recommendations were accepted. A special subprogramme for the food industry was included in the operational programme for industrial development. This provided for a total investment of £641 million in the food industry over the period 1994-9, specifically in the areas of capital investment, research and development, promotion and market development and human resources. The subprogramme is focused on developing three main sectors of the industry — basic foodstuffs, food ingredients and consumer food products. It also sets ambitious targets in terms of output, exports and employment.
Bord Bia celebrates its third birthday as a statutory body this week. In this short time its achievements can only be described as exemplary. Its statutory function is to promote, assist, and develop the marketing of food. The board succeeds where commercial entities physically could not because its approach recognises that the exploitation of centralised markets has been overtaken by the necessity to analyse and develop markets in the aggregate. It is worth noting that 78 per cent of the top 100 Irish companies are food and drink companies with an export value of over £5 billion for this year.
Under the banner, "Ireland the Food lsland", Bord Bia presents and dynamically sells the Irish food stall to the global market. Food and drink are a major component of our Celtic tiger economy. It is our largest indigenous industry. Standing on the four pillars of quality, innovation, export orientation and market sensitivity, the board aims to increase the sales and exports of food and drink by assisting to build long-term, mutually satisfying relationships between Irish companies and overseas buyers and by building long-term relationships between buyers and suppliers. Its task is a challenging one and it can only be successfully executed thanks to the ongoing support and positive contributions made by the producer.
Although historically the international perception of Ireland was one of a primary sector producer, currently there is a low association between Ireland and food by the international consumer. Branding and selling Ireland in a proactive manner is the best way to improve the international consumer's association of Ireland with food.
Bord Bia has 700 client companies, 92 per cent of which are Irish owned and 51 per cent of which were established within the last 15 years. These companies produce a wide range of products, varying from niche products, from speciality cheeses and chocolates, to basic foodstuffs and high value added sophisticated consumer ready products. They employ a number of different routes to market. These include Irish, corporate, generic Irish and private brands, private and own label, food service and food ingredients.
Yesterday, budget day, the Minister for Finance, Deputy McCreevy, stated that our agriculture and food industry remains central to our economy, which must be welcomed. He further aided manufacturing industry by reducing corporation tax by 4 per cent, making the standard rate 32 per cent. The tax take on the first £50,000 of profits of small firms has been cut to 25 per cent from 28 per cent.
Bord Bia was formed by amalgamating CBF, the Irish Livestock and Meat Board, the food promotion and marketing functions of An Bord Tráchtála and the export promotion functions of An Bord Glas for edible horticultural produce. As I outlined, due to the success of Bord Bia in the marketing and development of food, there is now a compelling argument for it to perhaps also assume responsibility for a similar function in a much wider context, encompassing other food areas important to the economy.
Following its inception in 1994, the board immediately drew up a five year market development strategy. This sets out in some detail how the many and diverse needs of its client companies, as well as the target set in the food subprogramme of a 60 per cent increase in food and drink exports by the end of 1999, are to be met.
The thrust of that strategy, which also incorporates the promotion and market development measure of the food subprogramme, can be broken down into the following five strands: first, developing a deep understanding of its clients, competitors and customers and applying that knowledge to the benefit of the food industry; second, providing information, contacts, market support and financial assistance to companies to assist in finding profitable, reliable and sustainable routes to market; third, promoting and marketing Irish products at trade level with an uncompromising commitment to product, process, service and quality; fourth, providing a continual flow of high quality market information and intelligence; and, fifth, developing and assisting in the development of quality assurance schemes. I do not need to spell out to Members that such schemes go a long way towards giving consumers confidence and in maintaining markets for producers.
The board's check list for 1996 outlines an impressive record of international achievements: first, it co-ordinated Irish representation at 19 international food fairs; second, it made 250 presentations to international buyers; third, it handled 1,400 buyer inquiries; fourth, it organised 288 buyer visits to Ireland; fifth, it responded to almost 1,000 market information inquiries from Irish companies; sixth, it significantly enhanced its beef and pigmeat quality assurance schemes; and, seventh, it awarded grants totalling £11.8 million to 216 companies under its company grants scheme.
The most public new venture undertaken by the board in 1996 was the Horizons conference and exhibition which took place in June last year and certainly proved to be a winning formula. The conference was addressed by some world business leaders and attracted senior food company executives from our principal overseas and home markets, with a combined purchasing power of £100 billion annually, to the unique and wholly Irish exhibition.
In terms of exports, while strong growth occurred in the prepared consumer foods, ingredients, lamb, pigmeat and beverage sectors, that growth was offset by the well documented difficulties in the beef industry since March 1996, with the result that in value terms exports in 1996 showed only a marginal increase over 1995 — £4.739 billion as compared with £4.702 billion.
We can look forward to a similar large scale event in 1999 when Ireland hosts the World Meat Congress, which was held in Beijing in China this year. I congratulate all concerned, including the efforts of Bord Bia and its executive, on their success in bringing that major international conference to Ireland in 1999. It will be a major event and will be a showpiece for the Irish food industry.
With regard to the announcement yesterday in the British House of Commons on bone-in beef sales, the Department of Agriculture and Food in conjunction with the Department of Health and Children and other relevant bodies, including the Food Safety Authority, will urgently consider the findings of the UK Spongiform Encephalopathy Advisory Committee and assess whether there are implications for the sale of meat in Ireland. The findings will also be the subject of consideration by the appropriate EU scientific committees. The overriding concern in all of this will continue to be the safety of the consumer.
I would point out, however, that the UK findings are based on experimental research which differs considerably from the situation found in normal field conditions. BSE controls in Ireland, which involve the slaughter of complete herds in which a BSE case is found as well as the slaughter of cohort animals, are substantially different to those which apply in the UK. Furthermore, the fact that Ireland has a very very low number of cases of BSE by comparison with the number found in the UK is a major consideration in assessing the consequences of the new findings.
The action taken against Irish beef in UK ports is not only illegal but totally unacceptable. Contact was made with the UK authorities last Monday morning and there have been regular contacts since. The free movement of goods through an EU member state is the responsibility of the authorities of that member state. It has been made clear to the UK authorities that this principle must be upheld by whatever action is required at local level, notwithstanding the view of local producers. My colleague, the Minister for Agriculture and Food, Deputy Walsh, will meet his UK counterpart, Dr. Jack Cunningham, today and this vitally important matter will be central to that meeting.
I now turn to an appraisal of the relevant features of the main product areas. Nineteen ninety-six was a year of continued good growth for the prepared consumer goods segment, which includes such product categories as pizzas, chilled and frozen ready meals and chilled dessert products. Bread and confectionery products — flour, sugar and chocolate based products — are also included under this heading. Overall, output of prepared foods grew by almost 7 per cent in 1996, comfortably ahead of the food and drink sector as a whole. Exports turned in a particularly impressive performance, rising by 11 per cent. This is an important area.
The prepared consumer foods segment is generally characterised by progressive companies with strong technical capabilities which have been singularly successful in the UK private label market, while smaller companies have successfully marketed branded products in the UK. The success achieved in the UK has also been extended into continental Europe. A number of Irish prepared food suppliers have established a good customer base in France, the Benelux countries and Scandinavia. In addition to geographical expansion, Irish suppliers are also successfully diversifying into the growing food service sector both at home and overseas.
Prepared foods continued to do well in 1997. The emphasis on convenience and health, combined with the capability of Irish food manufacturers to meet the exacting demands of international food buyers will continue to provide market opportunities. It is expected that the year will show a similar growth rate to that recorded in 1996, with exports again performing especially strongly.
Dairying is an important part of the economy. Nineteen ninety-six was especially difficult for Irish dairy products with several factors combining to depress export earnings by over 10 per cent compared with a high level recorded for 1995. A combination of weaker demand and increased supplies on world markets contributed to a fall in world prices for bulk dairy products. For example, in dollar terms, butter prices fell by around 33 per cent from the peak levels achieved in 1995. Similarly, prices for skim milk, the other major bulk dairy product manufactured in Ireland, were down by more than 20 per cent.
In addition to the negative market price trends, the Irish dairy industry also had to contend with a strengthening Irish currency which led to a green pound revaluation in the final quarter of the year, resulting in turn in lower EU support prices. Finally, 1996 was the first year that the commitments entered into under the Uruguay Round of GATT and the World Trade Organisation began to bite. The effect of these measures was to reduce the level of export refunds throughout 1996, notably for cheese.
The combination of all these factors added up to a highly challenging scenario for Irish dairy exporters during 1996. On the positive side, however, this fall was largely price driven and the industry was successful in marketing its volume output despite a much more difficult trading environment. Undoubtedly, this was the result of successful marketing efforts during the year.
On the domestic front, there was good growth in dairy product sales during the year. To an extent, this has been due to a combination of product innovation, more successful marketing and increased use of dairy products by prepared foods manufacturers. At a time when traditional dairy markets are increasingly challenging, food ingredients continue to provide value-added opportunities in a market which is growing globally. Bord Bia has specifically targeted the food ingredient sector in recognition of such opportunities in infant fruition.
For the overall dairy sector, 1997 has proved and is still proving to be a year of mixed influences. While global dairy market prices have recovered from the lows of 1996, a relatively strong Irish currency led to cuts in support prices over the early part of the year. On the other hand, the continued strength of sterling has greatly assisted exports to that market. Overall, 1997 is likely to recover in dairy exports, with growth in both volume and value terms over the year.
Inevitably, as far as beef is concerned, 1996 was dominated by BSE which precipitated a fall in beef consumption and market prices in every EU member state, albeit to differing degrees from one to another. Consumer reaction in most states was manifested in a shift in preference in favour of domestically produced beef. Measures aimed at stabilising the market included a reintroduction of intervention to the beef market in April and, in October, an EU package to curtail market supplies.
Despite the sharp drop in prices, Irish output at processing plants increased by 10 per cent in 1996. In conjunction with the industry concerned, Bord Bia concentrated its efforts on reassuring both consumers and the international trade of the high quality and integrity of Irish beef. These measures succeeded in helping to defend key market positions overseas. The industry was also successful in its efforts to diversify into new markets during 1996. That said, beef exports to the UK and to continental Europe were well down on the previous year, with international markets taking up virtually all the slack.
Partly as a result of the difficulties in the beef sector, international demand for lamb was buoyant during 1996. Overall exports were up by 12 per cent in value terms. In addition, the industry was successful in its market diversification efforts, especially with regard to developing value added sales to Germany and Scandinavia.
As expected, 1997 is a year of recovery and rebuilding as far as beef is concerned, with EU consumption likely to increase to 90 per cent of what it would have been in the absence of the BSE crisis. Conditions remain very difficult in the UK beef market in 1997 and Irish exports are not expected to increase significantly. Germany also remains difficult for beef. Markets where Irish beef sales have the potential to show growth include the Netherlands, Italy and Sweden. Lamb prospects remain favourable in Scandinavia.
Pigmeat had a comparatively good year in 1996 on both home and export markets. On the home market, sales grew by almost 15 per cent in value terms while on export markets the increase in value was almost 10 per cent. However, export volumes marginally fell due to intense competition from Danish and Dutch suppliers in continental EU markets. The growth in value terms was impressive, therefore, reflecting substantial progress with regard to adding value in terms of the product mix. Progress continues in this sector during 1997. Currency movement should further assist sales expansion in the UK, with the value added component also expected to grow further. Continental markets will remain competitive, but with limited opportunities for growth.
Nineteen ninety-six was a year of marked growth for Irish drinks on both the domestic and export fronts. In the domestic market, drink sales increased significantly. Notable growth segments included beer, cider, carbonated soft drinks and mineral waters. Spirits showed a marginal decline.
Exports continue to rise steadily, rising to 6 per cent in value terms in 1996. Irish drink exports are characterised by strong branding and high value added and are dominated by cream liqueurs, beers and Irish whiskey. The first two of these product groups continue to show strong growth on export markets while global demand for whiskey is much less buoyant.
In addition to the Irish based multinationals, recent years have shown the emergence of a vibrant indigenous drinks sector, producing spirits, cream liqueurs and mineral waters. These companies have a strong export focus and have successfully established market positions overseas, especially in the UK and the USA. This year has seen buoyant demand for virtually all of the drink product categories, which have been growing in recent years. The strong domestic economy should ensure further expansion of sales volumes on the domestic market. In export markets cream liqueurs will continue to lead the way with beer sales expected to climb further, while whiskey sales are expected to be relatively steady in a declining market.
As Members can see from the annual accounts, Bord Bia had a total income of £18.8 million in 1996, of which £13.1 million was provided from Exchequer and EU funds. The House will agree that this figure amounts to good value for money to the economy. Praise must be given for the essential role of the Department of Foreign Affairs through its embassies and agricultural attachés, who support the board's international offices. This combination culminates in an impressive international Irish work rate and the results speak for themselves.
Great credit is due to the exemplary work of Bord Bia. Thanks to its international network of offices, a weekly publication monitoring world agricultural commodity prices and its expert and financial assistance to the marketing plans of indigenous companies, clear dividends have been paid to the economy. This has taken place against a backdrop of uncertainty in the international food market. I pay tribute to the professionalism of the chief executive, Mr. Michael Duffy, and his management team and to the trojan work carried out on a daily basis by the staff of Bord Bia in its domestic and international offices.
I welcome the Minister of State to the House to discuss this important report. The Seanad is an appropriate place for this discussion and I expect to hear a broad range of views in the course of the debate. Members of the House have a close interest and have done good work in the food sector, in particular Senator Quinn, who has done great work and taken a close interest in the food industry, its consumer aspects in particular. I look forward to an interesting and stimulating debate.
The Minister of State referred to the formation of Bord Bia and how it arose from CBF, the former meat marketing board. It was a wise decision to take and it arose from a recommendation in the Culliton report. The Minister of State omitted to mention the Minister responsible at the time, Deputy Yates. We should note the work of all the former Ministers who took an interest in developing the food industry.
There are huge challenges and opportunities facing those in the farming and in the food production sectors. The Culliton report recommended the setting up of Bord Bia, pointing out that such opportunities exist. There has been a major transformation in the food industry over the last few years. The consumer's concerns have increased in importance. The disease status of many of our products has become a main concern for consumers. The BSE outbreak and the statements made by the British Government in the House of Commons in 1995 had negative effects on the industry in Europe, Ireland included. A challenge was put to the industry to respond to the consumer.
Bord Bia must be commended for the way in which it handled the BSE crisis. Wild statements made by various interested parties at times of crisis for the industry must be condemned. Wild and silly remarks may have been made by our competitors in European and world markets and Bord Bia responded exceptionally in difficult circumstances.
Brucellosis is one of the other main animal diseases prevailing. We recently exceeded the threshold whereby the number of disease affected farms exceeded 300. Therefore, it is imperative that the Department would be ready and willing to respond to such a crisis. Whatever action is necessary to restore our disease free status must be taken and we should lend it our full support. Bovine TB is another animal disease on which millions of pounds have been spent trying to eradicate it. I question whether value for money has been achieved for that expenditure. It is important to achieve disease free status in the various food sectors. Ireland must aim to be seen as a country which produces the best and most disease free food in the world.
The Minister of State referred to the trade shows and I compliment Bord Bia for their involvement. I attended the Horizons trade fair at the RDS as a member of my county enterprise board and I was impressed by the array of foods presented. It was a great exhibition and it should take place on an annual basis. Such a trade show should be open to the public because the array of food on display was the best I have seen. One would be proud to be a part of an industry putting on such a showcase exhibition.
The headquarters of Bord Bia is in the capital city. I do not know its exact location because I do not know Dublin. However, it would be possible to find it if it was located in Senator Caffrey's area of the west, in Cork or in wonderful Tipperary.
The capital of west Limerick.
They might be more suitable locations. For example, the name Tipperary is known all over the world.
Only for hurling.
It is also known for that. If the headquarters of Bord Bia was located in Tipperary, it would add to its status. People would recognise it. We should also consider relocating the headquarters of other bodies. There is an argument that the headquarters of the food board, which deals with produce from rural areas, should be located outside Dublin. There is a strong case for establishing it in clean surroundings in a rural area. In the future, consideration should be given to this aspect when such headquarters are set up.
The Department is in the final stage of preparations for the guidelines governing the food quality assurance scheme. I welcome the establishment of this scheme. However, what will it cover? I am not au fait with it and I would like more information and a discussion on it. The rural environment protection scheme has been highly successful and farmers who produce cattle under REPS should receive some status. I am sure the Minister of State agrees that people who are interested in the environment should be recognised, perhaps in the form of a special stamp for cattle produced under REPS conditions. Such products would be of greater interest to consumers and I urge the Minister of State to consider this proposal.
Many small industries and country farm houses were represented at the Horizon exhibition. These included young people who established small businesses. As a member of a county enterprise board, I recognise that the level of support provided by boards to small food production companies must be addressed. The county enterprise boards are not doing enough for people who want to establish small businesses to produce cheese, beef burgers, etc. There are many areas in which business people could establish small industries. It is most important that boards become involved in businesses involving the production and marketing of farm fresh, quality food in rural areas.
There are tremendous opportunities for the food industry. As a nation we boast that we have the best food in the world. Undoubtedly, that is the case. However, consumers are becoming increasingly demanding and Bord Bia has a responsibility to respond to that in the future. Consumers must be told that Irish products in the food and drinks industries are the best. There have been massive successes in those industries. There has been major growth in the cider industry and it is making a huge contribution to my constituency of south Tipperary. Many opportunities exist and it is up to us and Bord Bia to respond in a meaningful way.
I welcome the Minister of State. He has visited the House frequently and he is most welcome. I compliment Bord Bia and its chairman, Mr. Philip Lynch, and chief executive, Mr. Michael Duffy, on its excellent annual report. I also commend the wonderful work they are doing on behalf of the food industry, which is linked to agriculture.
Bord Bia was established on 1 December 1994, following the enactment of legislation steered through the House by the Minister for Agriculture and Food, Deputy Joe Walsh. I am not sure if Deputy Yates was involved, but the Minister initiated the legislation and I commend him for that. The Bord Bia Act, 1994, provided for the establishment of the board and the dissolution of Córas Beostoic agus Feola and the transfer of its functions and all the food marketing, promotion and development functions of An Bord Tráchtála to Bord Bia. The transfer to Bord Bia on the establishment date of the functions of An Bord Glas was related to the export and marketing of edible horticultural produce.
The functions of Bord Bia are to promote, assist and develop in any manner which the board considers necessary or desirable the marketing of Irish food and livestock. Bord Bia works in partnership with the food industry to promote Irish food and drink and to develop markets for commercial advantage. The organisation's role in the marketplace in its policies, programmes and action plans is driven by this perspective. The overriding aim is to increase the sales and exports of the food industry while strengthening its market position. The organisation intends to be action oriented and focused and to pursue food specialisations to the advantage of the industry. On the basis of the report, the board has functioned well and is working towards those goals.
The Minister stated that the board's checklist for 1996 outlines an impressive record of international achievements. It co-ordinated Irish representation at 19 international food fairs. This is most important. It also made 250 presentations to international buyers, handled 1,400 buyer inquires, organised 288 buyer visits to Ireland, responded to almost 1000 market information inquiries from Irish companies, significantly enhanced its beef and pigmeat quality assurance schemes and awarded grants totalling £11.8 million to 216 companies under its company grants scheme. The work of Bord Bia is commendable. The Minister also stated that of the top 100 companies in Ireland, 78 per cent are food and drink businesses and the value of their exports is over £5 billion. This considerable amount is of benefit to the country. In addition, the level of exports rose by 11 per cent.
Ireland was referred to as a food island. It also has what many other countries seek, a green image. This image, which is the envy of the world, is an invaluable asset in the promotion of Irish food. We must build on this reputation in the future.
The food industry has undergone enormous changes in recent years. There are between 40,000 to 50,000 people employed in the industry, but if account is taken of those employed in subsidiary industries, the actual figure is closer to 100,000. There is also great potential for job creation in the food industry.
As already stated, there have been major changes in the industry, particularly when one considers that 30 years ago there was a creamery in every parish. That is no longer the case but in the area in which the Minister of State and I live farmers used to transport milk by horse and cart or tractor and trailer. Morning business at creameries took the form of a social occasion because farmers would meet, discuss events and read the newspapers. The conversations would cover the price of cattle at fairs or hurling or football matches played on the previous Sunday.
At that time efforts were also made to improve the quality of cattle through the licensing of bulls and the arrival of the bull inspector was a great social occasion. However, that part of the social fabric has disappeared. People used to meet each other more often while now they hardly meet from one end of the year to the next.
During the period in question farmers owned three to four sows and would sell the progeny of these animals to other farmers or fatten them themselves. This provided a sideline to the main industry, dairying, and helped provide an income to maintain a good standard of living. It has now become specialised through the use of large pig units, which are more efficient and ensure that there is a better quality of food available for the export market.
Consumers are important and their concerns are paramount. When the An Bord Bia Act was debated in the House, former Senator D'Arcy tabled an amendment to permit the inclusion of consumers to the board. The amendment was accepted and there is now a consumer representative on the board of Bord Bia. There are two types of consumer: urban consumers and rural consumers. Urban consumers have the advantage of living in towns with large supermarkets where goods can be bought cheaper than in small villages. Door to door deliveries of milk are essential in rural areas and their cost to the consumer is greater because dairy produce is perishable and must be delivered daily. In the final analysis the consumer calls the shots because he or she decides the products on which they spend their money.
Senator Tom Hayes referred to the BSE crisis which caused great concern to the agriculture industry following the announcement of its onset in the House of Commons. However, the Department and the then Minister responded well to the crisis and to consumer concerns. A guarantee was provided that Irish beef is the best and safest in the world and consumer fears were allayed by the work of Bord Bia and its agencies.
Hygiene standards in retail outlets are another area of concern. Everyone working in the food industry should have a knowledge of food hygiene. I am not suggesting that they attend intensive courses but the basic principles should be understood by those who sell food. From my limited experience, I believe hygiene standards in supermarkets in many retail outlets are high and are improving all the time. However, there is room for improvement in some areas. It would be good if, in the future, people were required to attend short courses on food hygiene education because some of those working with food handle it in a manner which is not recommended in text books.
Tremendous changes have taken place in the eating habits of Irish people, particularly the young. Between 15 to 20 years ago people were not aware of the existence of pizzas. The number of Chinese, Italian and other restaurants is on the increase. While bacon and cabbage remain popular, people's eating habits have changed, and there is an apparent preference for variety. People who eat bacon and cabbage at home might prefer to eat Chinese or Italian food when they are out. It is important that the food industry takes cognisance of this and meets the changing demands. I have no doubt that Bord Bia is meeting those demands under its chairman, Philip Lynch, and chief executive, Michael Duffy.
The report of the chief executive of the board is encouraging. It states:
The performance of Irish food and drink exports at year-end showed a slight increase in value. The growth in consumer foods, food ingredients, drinks and meats (other than beef), was offset by the difficulties experienced in world dairy and beef markets. Prepared consumer foods exhibited the strongest export growth, up by an estimated 12 per cent to over £680 million. Export earnings in the drink sector increased by six per cent to almost £500 million. Export earnings in the dairy sector were down on the record levels achieved in 1995, due to a weakening in world prices, and a consequent reduction in export volumes as intervention support played a stronger role. Within the meat sector, total value of exports also declined with the reduction in beef export values more than offsetting the growth in lamb, pigmeat and poultry exports.
The decline in the value of exports in the meat sector was also due to the decline in prices following the BSE crisis. The Minister of State indicated that consumption of alcohol held steady and, if anything, increased slightly. I am sure it will continue to do so.
Reference was made to the siting of Bord Bia's headquarters outside Dublin. When the relevant Act was put through the House, the then Senator Kelleher — who is now a Member of the Lower House — made a strong plea to have it situated in Cork. Senator Tom Hayes has a point in that it might be good for the board's headquarters to be situated in a rural area where the green image would be obvious for visitors to see. I welcome the Minister of State's statement that dairy exports are likely to have recovered in 1997. I hope that he and Bord Bia will ensure that this continues.
I thank the Minister for coming before the House and I congratulate Bord Bia for its good work.
I welcome the opportunity to contribute on this topic, to which time must be allocated if it is to be given the attention it deserves. The Bord Bia report is worth reading and Senators Rory Kiely and Tom Hayes and the Minister of State have already covered much of it.
To bring this issue down to practicalities, I was behind the butcher's counter in my company's Lucan branch this morning when, at 8.30 a.m., the telephone rang. The call was taken by the head butcher, Tosh Crowe. It was from a customer who wanted to return the T bone steaks she purchased yesterday following stories and articles she saw on television and read in her newspaper about beef on the bone. I believe that, given current trends, the food business will continue to move from crisis to crisis. The incident to which I referred indicates that the Bord Bia report is already out of date because world events move so fast.
In 1996, the food industry was dominated by the BSE crisis. This will continue in the future. The crisis receives much attention in the report and I wish to refer to a number of matters which arise as a direct result. As previous speakers stated, food safety is relevant to all of Bord Bia's work. The way in which the BSE crisis took hold throughout Europe last year illustrates that we now live in a society dominated by the end customer. I met customers and suppliers throughout Europe on whom the BSE crisis had had an enormous effect. It is a fact of business life, although some may not like it, that customers call the shots. If they express a preference for something, even if it is wrongly based as I believe it is today, that will dominate the market. What matters to the customers is the important thing.
In the past few years, the issue of food safety has been dominant. I recall a time when customers took food safety for granted and their priorities lay in other directions, for example, in the areas of taste and convenience. Now health is customers' number one concern and food safety has taken centre stage. That is why the BSE crisis reached such a scale with a suddenness which startled many.
The first lesson I suggest we draw from that is the importance of information to customers. By "information", I do not mean propaganda. Customers today are very sophisticated and are becoming more so. They do not want to be persuaded; they want to be informed and to make up their own minds. That is the difference between propaganda and information. People do not want to be bombarded with generalities about the excellence of Irish beef, they want specific information. When they look at a piece of meat in a shop they want to know where it came from and whether they can trust the person selling it. They want specific details.
Even prior to the BSE crisis, I was aware of customers' thirst for information and as a result, my company took two steps to deal with it in 1989. First, we introduced traceability and began to tell customers exactly from which farm beef had come. We did that in response to their demands and concerns. We even put up a photograph of the farmer over the counter and this had a tremendous effect when it came to building trust. Beef suddenly changed from being an anonymous piece of meat to being the produce of an individual. The importance of this measure was not that it created a "feel good" factor but that identifying the farmer meant that each piece of beef could be traced right back to the farm gate if necessary. If a problem arose, its source could be identified easily and quickly. As retailers, we also laid down standards as to how the beef could be handled all the way down the distribution chain. We worked to inform our customers of those standards and of how serious we were about them.
My point in mentioning all this is very simple; as a result of these measures we won the customers' trust so that when the BSE crisis occurred last year, we found it had much less impact than we might have expected. We also found that, once the initial wave of reaction died down, customers began to return to eating beef very quickly and, one year later, they were buying more beef from us than ever before. I sat on a customer panel last week in the northside where I asked 16 customers how they had changed their habits since last year. Not one of them was acting differently now to the way they had acted in March 1996; they had changed in the interim but had returned to their original position. Some of that was due to lower prices but the main reason was they had satisfied themselves on safety as they were receiving sufficient hard information and had a relationship of trust with their supplier.
I firmly believe these two principles should form the foundation of our future attitudes to matters like this. We should give the customers more information about what they buy and we should never stand in their way by attempting to hide or massage information.
We should not try to play down the actual incidence of BSE. The Department of Agriculture and Food used to announce cases as they came to light. Some time ago, they decided to release this information only once a month. That did not fool anyone and it lowered the level of public trust in the Department. The public felt the Department was acting in the interests of the farmers, not in their interests as customers.
Traceability has now become accepted as being highly desirable. The EU is putting in place a scheme for this which will apply across the whole of Europe. The Irish Veterinary Association is putting in place an inspection and monitoring scheme which has received mixed reactions. My attitude is that anything which increases the level of information available to customers is a good thing and is in the long-term interests of the food industry.
I want to move from the particular issue of BSE to the wider issue of food safety. One good thing which came out of the BSE crisis was the realisation, at Government level, that we needed a statutory food safety authority with teeth. As a result, the Food Safety Authority of Ireland was set up at the end of last year under the chairmanship of the president of DCU, Dr. Danny O'Hare. As this body is still in the process of gestation, I want to express my opinion on the form it should take. I disagree with key aspects of the Government's declared policy on this and I hope it is not too late to influence its thinking.
We are all agreed on the need for a food safety authority as a matter of urgency and everybody is agreed that such a body should be completely independent of the Department of Agriculture and Food. I have nothing against the Department but its job is to promote the interests of agriculture and the interests of farmers. It cannot, therefore, be an independent voice when it speaks about food safety. If the Department of Agriculture and Food controlled the Food Safety Authority, nobody would believe what the authority said and it would not have the required credibility.
I am very pleased that the attempts to bring the Food Safety Authority back under the aegis of the Department of Agriculture and Food have failed. It is now stated Government policy to retain it under the aegis of the Department of Health and Children. There is, however, another aspect of that policy with which I disagree and it goes to the heart of what we want the Food Safety Authority to do.
There already exists an army of people whose job it is to monitor and promote food safety in various ways. These people are spread across a number of Departments and some of their functions extend well beyond that of food safety to more general health interests. The question we must ask is what is the relationship between these people and the new Food Safety Authority? The original answer to that question was simple, clear-cut and, in my opinion, the right one. The Food Safety Authority was conceived as "an inspector of inspectors". It would, from a totally independent standpoint, rigorously monitor all the State's activities on food safety. If it saw weaknesses or if it uncovered any bad practices or inefficiencies it would expose them and it would have the clout to get things done. That was one way of operating but the present Government wants to do things in a very different way.
According to the Programme for Government, the Government wants to amalgamate all of these people into one body. Instead of overseeing our inspection process, the Food Safety Authority would itself become the inspector. In one way, I can see the logic in that and the Minister may be able to explain it to us. Putting all the people involved in food safety together seems to suggest that greater focus and efficiency would result. That becomes particularly attractive if one's overall agenda is to dismantle the huge bureaucratic monolith the Department of Agriculture and Food has become — something the Fianna Fáil election manifesto originally suggested.
Such an approach would, in my view, be disastrous and would prevent the Food Safety Authority from ever achieving the credibility it must have if it is to fulfil its mission. It must be independent and be seen to be independent, not just in this country but throughout the world and wherever we attempt to sell Irish food. We will be telling the world that we are the watchdog over how Ireland polices food safety and we are satisfied with what we see. How can the authority have credibility as an independent voice if it is doing the policing? The reaction from the public would be the time honoured "Well, they would say that". If that is the reaction, the Food Safety Authority is dead in the water. It might as well shut up shop because its central point will have been lost. The importance of this issue cannot be over-stressed.
On the international scene the Irish Food Safety Authority will have an uphill task in any case. People in the international food business, whom I meet many times, have asked me if they can trust any organisation that is Irish and is an arm of Government. They believe such a body will say whatever it is in Ireland's interest to say. I have replied that this body can be believed because it will be independent of the food industry and the Government, and will act wholly and solely in the interests of the customer. That is essential and it is why it was so important that the authority did not come under the aegis of the Department of Agriculture and Food.
It is equally important that the authority is not saddled with the burden of carrying out inspections. If the inspectors become part of the Food Safety Authority, a massive new vested interest will be created. Instead of being an independent watchdog, the authority will be transformed into a body which will be obliged to defend its own procedures. It is equivalent to making the Ombudsman the head of the Civil Service. What would be the result? He would be obliged to defend his own team and decisions. One can only take that road with regard to the Food Safety Authority if one fails to see that the point of the authority is its independence, just as the point of the Ombudsman is his independence.
I hope the Government can be persuaded to rethink its approach to this vitally important issue. I make no apology for discussing it at such length. The existence of the Food Safety Authority is vital to underpin everything for which Bord Bia stands. Bord Bia cannot do the authority's job but it cannot do its own job properly in the absence of a credible Food Safety Authority.
Another basic requirement for the success of Bord Bia is the form of its relationship with Government. I was a member of the expert group, to which the Minister of State referred, which led to the establishment of Bord Bia. I believe Senator Hayes was incorrect in giving credit for its establishment to Deputy Yates. The then Minister, Deputy Walsh, set up the group. I was in a minority of one in that group in arguing that Bord Bia should not be under the aegis of the Department of Agriculture and Food. It was interesting to be a minority of one in such an expert group.
The reasons for my dissension parallel those which I have offered in relation to the Food Safety Authority. Successful marketing is customer driven, not producer driven. As the Department of Agriculture and Food acts for producers, it cannot have the detachment necessary to make customer driven marketing a success. Bord Bia was ultimately established under the aegis of the Department — I did not win the argument — and it has been struggling with that relationship ever since.
Given that structural millstone, the board has been doing a great job and the chief executive, the chairman and the staff deserve every credit. I have seen how the board carries out its work on a number of occasions. Last June I was in Boston when Bord Bia was there to launch the first supermarket of Irish products. The board did its job well and in great style. I watched coverage of the event on CBS television the following morning and it demonstrated what can be done when one focuses one's attention on a project.
However, in one sense the structural relationship has become even worse. When Bord Bia was established there was an office of food within the Department of Agriculture and Food. That was an excellent idea which dated from 1987. If the food sector could not be removed from the Department, the next best option was to have an office of food within it. I was, therefore, disappointed when the last Government abolished that office. It also abolished the dedicated role of the Minister of State with responsibility for food. The argument was that everybody involved in agriculture would be responsible for food. The result was, as can be expected, that nobody was responsible. The food sector lost out.
I read about the Government's commitment, in the Action Programme for the New Millennium, to reinstate the office of food with great pleasure. However, that was six months ago and there is no sign of the office. That is inexplicable. In 1987 the office of food came into being the day after the Government was formed. It would be even easier to do that now since the blueprints are in place from its previous existence. Why is there no sign of the office? I hope the Minister of State will reassure me there will be no U-turn on this matter. Six months of inaction suggests the idea has been quietly shelved, just as we discovered yesterday that the concept of a 20 per cent starting rate of income tax has also disappeared.
If the office of food were to be shelved it would be a bad development for the industry and for Bord Bia. It would compound and perhaps make permanent a serious mistake committed by the last Government. If there has not been a change of policy, there has been an unacceptable amount of foot dragging in bringing the office of food into being. How much longer must we wait?
I wish to refer to two further issues. I am concerned about our continuing over-dependence on the UK. Britain has always been the main market for Irish food and in many ways we are lucky to have such a market since it is virtually on our doorstep and there is no language barrier. Irish food has been well known in that country for generations. However, in a volatile world economy it is always enormously risky to keep too many eggs in one basket. One of the reasons we joined the EU was to widen our market, but we have not been very successful, particularly in the food sector. In the year covered by the Bord Bia report, our dependence on the British market increased and our sales there are growing faster than elsewhere. This is a trend we must watch, especially as movements in British and Irish currencies will make it more difficult in the future. It will become even more risky when we join EMU without Britain, when the currency position will change again.
The other issue is the need to acknowledge that the future of Irish food is not in commodity products but in products with high added value, especially items such as customer ready meals. I am delighted Bord Bia has a separate committee for this area. By the new millennium our food industry must take a giant leap towards the other end of the spectrum from commodity products to customer driven products.
This country has almost unlimited potential to create food products at the top end of the scale and to create many thousands of jobs as a result. As in so many other areas, the future is what we will make of it. The global marketplace for food is intensely competitive and to win a place for Ireland at the top end of the market will take as much marketing and management skill as is needed in the most sophisticated high tech industries. I remain convinced we are capable of achieving that if we set our minds to it and if we realise we must get rid of the baggage from the past along the way.
Bord Bia can be an important tool in making that future a reality. However, it cannot do everything for us. We need national awareness of what is at stake and national determination to focus on this virtually untapped resource. It is in our hands and in the hands of the many individuals who have small companies, with only a couple of employees, who are setting up to do that and to develop into growth industries.
I congratulate the Minister of State for giving the House the opportunity to debate this report. I also congratulate Bord Bia on its work. However, there are questions about its direction and we must be careful not to take the wrong course.
I welcome the Minister of State to the House and congratulate him on his appointment at the Department of Agriculture and Food. There is no better person than Deputy O'Keeffe to fulfil that role as he certainly knows about farming from his years of experience in that field.
The issue of food and quality food production is crucial to the success of our agricultural industry. We can be proud of our clean green environment which offers a top quality product for the consumer. I compliment the Minister for Agriculture and Food and the Government for their continuing hard work to assure consumers at home and abroad of the high standard of Irish food and to create new markets for our produce. Bord Bia is doing an excellent job in promoting our food produce in an ever changing market. Its honest and genuine work in marketing Irish food is recognised the world over.
A strong link between industry and the market place is very important as consumers must understand the naturally based system of production. In addition, the producer or farmer at home must understand consumer demands.
The beef sector is experiencing severe difficulties as prices continue to fall. Yesterday's announcement by the British Government concerning bone beef is particularly regrettable and unfortunate as the quality and safety of Irish beef can be assured due to our strict standards and controls. Irish beef is one of the safest products due to our system of grass production. This is why the work of Bord Bia is so crucial in informing consumers about production systems and the great efforts in recent years to improve overall quality.
During the current BSE crisis Bord Bia has done great work at home and abroad to allay consumers' fears and concerns. I urge Bord Bia to work with the industry, the Department of Agriculture and Food and the farming sector to ensure an effective marketing campaign is undertaken. I am confident that if the message on Irish beef can be got through to consumers here and abroad, they would eat more Irish meat.
With strict controls in place, including a system of total animal traceability, standards and quality in the beef sector can be assured. Farmyard controls go back to 1989 and, in addition, nearly all meat factories have received awards for their cleanliness and hygienic processing systems.
Since assuming office, the Minister for Agriculture and Food, Deputy Walsh, has done much to assist the beef industry. I compliment the Government on the measures in yesterday's budget to assist farming in these difficult times.
It was all in a half page of the Minister for Finance's budget speech.
Well, it was there. That is the important thing, Senator Hayes.
I welcome in particular the extra £23 million for headage payments and the extra money for the young farmers' installation scheme. In a very genuine way the Minister has worked to restore consumer confidence in Irish products with a comprehensive system of traceability of all livestock now in place and with the quality assurance scheme internationally respected.
The farming community is to be complimented on its efforts to cope with the BSE crisis. Farmers' livelihoods have suffered most of all during this crisis with a huge drop in income caused by losses of up to £200 per animal.
In recent years the dairy sector has made great progress in the quality assurance sector. With quality the key to survival in milk production, huge investments by farmers and processors have assisted the sector greatly. Despite the many challenges that dairy products have faced in recent years, the sector has responded brilliantly and its reward has been to maintain milk prices at a fairly good level. Farmers, in particular, are to be commended on the level of investment to ensure they produce a top quality product for the consumer. In addition, processors are continually researching new products for a competitive market place.
In my own region of Monaghan and Cavan, the mushroom and poultry industries are huge employers producing goods which are supported by market forces alone, without any artificial supports. The mushroom industry has been one of the great success stories of recent years, providing good incomes to many farm families. It is an industry which produces competitively priced quality goods, which is what consumers require.
The poultry industry has experienced rapid growth in recent years, with producers and processors working in partnership to develop high quality products to meet consumer demand. While both the pig and sheep sectors are experiencing price difficulties at present, Bord Bia is again doing a great job in marketing their produce.
Irish agriculture faces a great challenge for the future. The sector must be ready to meet the great changes ahead by ensuring that everything we produce is market driven and geared towards the consumer. I compliment Bord Bia on its marketing, which is being capably undertaken, and I wish it well in the future. Farmers, food processors, the Government, Bord Bia and all other agencies involved in the food sector must unite in selling Irish food and drink as the premier produce in the world.
Senator Quinn's presentation was excellent but I am not sure Bord Bia should be independent of the Department of Agriculture and Food. Producers and customers must be united. The producer must give the customer what he wants. I do not think separation would be good. The present set up is probably the best way to move forward: there has to be a link.
I was sad to hear of the layoffs which will take place in Avonmore Foods plc and Waterford Foods plc. It is sad that this is happening at the level proposed in a growing food sector.
I compliment the Minister on bringing the annual report of Bord Bia before the House.
I welcome the Minister and the overview he gave of the work of Bord Bia, an important statutory body which is doing tremendous work promoting the food and drinks industry. It is an area that has been neglected in the past and its importance to the economy and our balance of payments cannot be over-emphasised. It is one of our major industries.
However, I have a number of criticisms. Bord Bia is not sufficiently focused on indigenous industries in the food and drinks sector. I am a board member of a development company which established one of the country's first food innovation centres in Ballina. Bord Bia should be focusing on the establishment of more food innovation centres. A food innovation centre is a dedicated building with state of the art equipment and an atmosphere conducive to the small entrepreneur who has an idea he wants to develop as a food product — drink, confectionery, chocolate, sauces, mayonnaise, etc. It is an incubation unit where the entrepreneur can develop his product and test the marketplace in a local rather than a macro-economic environment. Then if the product is successful it can be developed.
An outstanding feature of the centre in Ballina is that some of the incubation units have become small industries. This is highlighted by the fact that tomorrow the Minister for Enterprise, Trade and Employment, Deputy Harney, will open a chocolate factory in Ballina which started in one of these incubation units. This underpins the importance of food innovation centres.
Another idea which developed from the food innovation centre in Ballina was the marketing of tuber seed potatoes. The west of Ireland, and in particular the hinterland of my area, was famous in former years for its traditional seed potato market, the anchor of the local industry and economy. This ended with the evolution of agriculture over the years but it is great to see its return due to the innovation centre. This year, its second year of operation, 500 acres of seed potatoes were planted in the north Mayo hinterland. This reintroduction of a traditional product provides a major boost to farmers. There is a market for the product, something proved on a small basis within the centre. While Bord Bia did not give any capital grants or funding to the centre, it got some ideas and help from it.
However, Bord Bia should examine the area of capital funding. The centre would not have been possible were it not a joint venture with a major co-operative — the North Connaught Farmers Co-Operative Society Limited. The enterprise was funded by grants from the IDA and Forbairt while FÁS management grants sustained the management system in the initial period until the centre was up and running. Now there is a state of the art building with incubation units from where industries can enter the marketplace having discovered and cultivated their product. The centre also provides the correct environment for a businessman developing a product through having the right atmosphere, market niche and professional back-up from agencies such as Bord Bia, the IDA, Forbairt and others.
Bord Bia could examine such centres, the one in Ballina being a pioneering project. Nobody knew how it would develop but its success will be demonstrated tomorrow with the opening by the Minister of the first expanded unit which began in the centre's incubation system.
We have 12 units, some with no more than one or two people, developing sauce products, mayonnaise, drinks products and other ideas, hoping that some day they will reach the stage the chocolate manufacturer has reached. The fact we have a statutory agency in place to examine and help such developments is to be welcomed and the foresight of the Minister is commendable.
I am sure there are good reasons Senator Quinn asked that Bord Bia be divorced from the Department of Agriculture and Food. I do not have sufficient knowledge to determine the merits or otherwise of that case, but I know from my involvement that the system works. Food safety and consumer appreciation are central issues. The image of products developed locally can be easily identified because anybody can go to a local unit and see what is being produced and the environment in which it is being produced. It promotes confidence in the consumer when they see the product being developed and when they know the people behind the scenes and those who bring the product to the marketplace.
Image is a central issue. You do not book into a hotel without first looking at its ambience. Consumers are becoming more and more reluctant to buy a product which they cannot relate to or identify with. They like to know who is producing it and the atmosphere in which it is being produced. We all have visions of kitchens in eating places which were not up to standard. We often worried because we could not see the system which was being operated inside. We lacked confidence in these establishments. In this pioneering area local people can go in and see the product being developed and thereby develop a confidence in the product and in the people who are producing it. The entrepreneur with state of the art surroundings is not ashamed to have customers come and visit those surroundings.
Many products were developed in kitchens. People worked on a simple idea — making jam perhaps. I know producers who began making jam in their own house, then moved to an incubation unit, brought the product to a wider market and developed a brand image. Consumers have more disposable income and are becoming more critical. Bord Bia could play an important role in pursuing this type of initiative but I have seen no mention in the report of a focus on indiginous industry. I would impress on the Minister the intrinsic value of this type of entrepreneurial and pioneering approach.
Bord Bia is only three years old. It has achieved remarkable results in three years. The products were there already because we have some of the best brand names in the world in food and drink. They are known globally. There is, however, a great need to help the local economy and to develop community spirit within areas where big industry will not come and where employment might be lacking. Products should be developed in small incubation units and expanded on to the market place when they can be developed.
The Minister should reflect on all the issues which were raised this morning. I hope that when Bord Bia produces its next annual report we will see more innovation, pioneering spirit and initiative.
The Minister will not mind if I say that we have known each other for a long time. He is known as a person with a tremendous understanding of the production and processing of food, coming from where he does and farming to the extent that he does and given his involvement with the co-operative movement.
The annual report of Bord Bia 1996 is nicely presented. The audited accounts carry their own story. The chief executive's message is one of focused content. The chairman, Philip Lynch, is also a Corkman. In the first paragraph of the chairman's statement he sets out the functions of Bord Bia:
The functions of Bord Bia are to promote, assist and develop in any manner which the board considers necessary or desirable, the marketing of Irish food and drink and livestock. Bord Bia exists to work in partnership with the food industry to promote Irish food and drink and to develop markets for commercial advantage. The organisation's perspective is the marketplace and its policies, programmes and action plans are driven by this perspective. The overriding purpose is to increase the sales and exports of the Irish food industry while strengthening its market position. The organisation is focused and pursues food specialisation to the advantage of the industry and the Irish economy.
We are discussing the activities of Bord Bia while a section of the food industry is facing a crisis. This began in 1996 when a statement in the House of Commons in Britain led to the BSE crisis. This week we witnessed the blocking of the free transportation of our goods, as an EU member, to Britain and Europe. While we discuss the activities of Bord Bia, the illegal activities of others are impeding this country in its rightful and legal activities. I suggest that we give every support to the Minister for Agriculture and Food in his activities today. I understand that the Taoiseach has notified the Dáil that he will be in communication with the British Prime Minister to discuss what is taking place. As long as such embargoes are allowed to continue — whether in Britain, France or anywhere else — they will damage what is happening here.
Last evening we had a further announcement about boned beef. Once again the spectre of the quality of food is raised. My understanding is that many members of the police forces at the British ports — allegedly enforcing law and order — come from farming backgrounds and are engaged in farming in their off-duty time. One must question the commitment of such police forces and whether they are being completely impartial. The British Government involvement can be called into question in this regard.
This is an island nation whose farmers produce food. We say we produce the best, but that does not matter as the consumer calls the shots. Our food production activities have been called into question in the past. Today we are sure our food is hormone free and that the use of antibiotics in the food chain and on the farm is controlled.
Bord Bia should remain under the control of the Department of Agriculture and Food because it is a trading organisation. It must provide the necessary guarantees to the consumer, who is the boss. The Food Safety Board, which was set up in 1996, is involved in this area. Many people are convinced that the time is right to separate the activities of those organisations which give assurance to consumers and the Department of Agriculture and Food. It is necessary to put mechanisms in place to assure consumers in this country and in those to which we export that our food is of the highest quality.
People have commented in the past about what is happening in the Department of Agriculture and Food without being fully informed. If we want consumers to have confidence in our food production, an independent body must be set up to supervise what appears on our shelves. Perhaps it is time a new Department was set up under the direction of the Minister of State, Deputy Ned O'Keeffe.
There is loyalty in Cork.
It would do no harm to move it out of Dublin to a green field site. Food forums have been held in Kinsale in the past.
It could be brought to the Senator's electoral area.
All politics is local.
If we are serious about this issue, we must separate what the consumer wants from the producer's needs. That cannot be done under the aegis of one body. It is time to remove that function from Bord Bia and give it to another agency.
Perhaps it is time to establish producer groups to produce food to recognised quality standards with full traceability. We should be involved on the producer as well as the consumer side. Our cottage based industries have a tradition of producing quality cheeses and other quality products. Senator Quinn is one of the leading lights in support of Irish products. Other supermarket owners, however, could do more in this area.
Is our food and drugs administration up to scratch? Are we overly dependent on Great Britain? Additional technical staff should be appointed if required. The overriding factor should be whether we can produce sufficient food world-wide to feed mankind to the year 2050. It is anticipated that by then there will be approximately ten billion more people in the world than there is today. People attack the fundamental production and processing of food without the knowledge they claim to have. Without the production and processing of food, there would be starvation and famine in many countries in the western world. We need new technology, proper controls and the knowledge of producers and processors to produce food for the millions of people in the world.
I am one of those who would also like the activities of Bord Bia separated from the Department of Agriculture and Food. It is disappointing that many Members have spoken for the producers, but few have discussed the consumers' point of view. It is disquieting to note that the report of Bord Bia places so much emphasis on consumers abroad. I would like more emphasis on consumers in the Republic, because if we do not have a good domestic market for whatever we produce we will not have a good foreign market.
There should be consultation with the Consumers Association of Ireland because, as the watchdog for consumers, it produces useful reports on food. The more cross communication there is between Bord Bia and the Consumers Association of Ireland the better. Women, who are the main purchasers of consumer foods, have a tremendous responsibility to try to buy as many Irish food products as possible because in general they are very well produced.
The labelling of products has improved enormously recently so that it is now possible to know the origin of products. I would urge consumers to watch out for food contained in packaging which was made in Ireland or which was packaged in Ireland. This is an area in which one can be led astray. One thinks one is buying Irish food and one ends up buying something which was packaged but not produced here, and I would urge consumers to buy as much food as possible which was produced here. Naturally, the quality of the food comes into it, but I will discuss that later.
When we are considering buying Irish, it is important to remember that one can look in the local corner shops. Single people and older people who buy on a small scale should consider the price disadvantage which may be built into travelling some distance to a large supermarket before they decide against buying in a local shop. Items may be a little dearer in local shops but such shops tend to sell more local produce.
I have visited the larger supermarkets with an eye to seeing what has been produced in Ireland and I have been gravely disappointed in some cases. I must single out Marks and Spensers for criticism because the Irish Farmers' Association was correct some months ago to question the level of Irish produce which that company purchased. This was brought to my attention when I bought a sandwich in Marks and Spensers in Cork and I found that it had been produced in Ipswich. This was an amazing discovery because I never thought it would be worthwhile transporting anything like that such a distance. When I looked around the shelves I found that very little was produced in Ireland. When the IFA questioned Marks and Spensers about this, the store's spokesperson stated that they bought less from outside than their competitors. The "outside" to which the spokesperson referred was really a reference to outside the British Isles and it showed that the company looked on the Republic of Ireland as an appendage to its UK operation.
While I am delighted to see there are some products on the shelves at Marks and Spencers which were produced in Northern Ireland, I would be very critical of the small number of products on the shelves, of which meat and bottled water were most noticeable, which are produced here. Of course Marks and Spencers produces and imports its own brands, but we as Irish citizens must watch this because there are excellent home produced products, such as Finches lemonades to name but one, and we must be mindful of their employment potential.
I do not mean to say that Marks and Spencers is the only company of which I would be critical, but I would have to say that Tesco at least appeared to be open to more consumer criticism when it arrived in Ireland, because when local people wanted to know why there was so little in the way of Irish produce in its new store in Athlone, I gather some produce heavily labelled "Bought in Ireland" was put on the shelves within a few weeks.
I urge consumers, and women in particular, to make sure they try to buy products which are produced in Ireland because without a decent home market these firms will not survive. For example, even major firms like Ballygowan began in a small way on the home market. If everybody had continued to buy Perrier water at great expense when Ballygowan first entered the market, where would Ballygowan be now? Now we hardly see Perrier water on the shelves. I have nothing against French products but I am delighted to see so many Irish bottled waters available. Indeed, every small town appears to have its own bottled water and I would urge people to buy these excellent Irish products.
I welcome the establishment by Bord Bia of a subcommittee on convenience foods because it is very important that the quality of these goods are constantly assessed. Indeed, they seem to me to be of a high standard. There are so many such products, like Ballymaloe sauces and pickles, Trista mayonnaise, Manor Farm chickens. There is great choice. When I look at the extraordinarily expensive imported chocolates, I think of Lir chocolates and Chocca Mocca and remember that these come from small firms which often started in a woman's kitchen, grew to employ a couple of people and then went on to greater things. It is most important for consumers to remember that indigenous industries need our support.
I was delighted that the Food Safety Authority was made independent. That was incredibly important. Frequently one can see problems arising at the point of production, that is on the farm, a long way off, and the Department of Agriculture and Food must make a dramatic effort to deal with these problems when they first arise. BSE has been the most appalling curse of the past few years on the beef industry. My colleague, Dr. Pat Hattigan, talked about prions and the possibility of disease being passed on through the food chain in the 1970s. What would have happened if we had our wits about us and had put money into research in that area? Just because other countries are not putting money into research does not mean we should follow suit, particularly when we are so dependent on a particular area as with the beef industry. The qualms of the veterinary profession, consumers or farmers about animal health must be addressed instantly. We cannot wait until a problem develops. It is so serious that we must get at such problems at once.
All cattle going into abattoirs are now being tested for E-coli 0157, the lethal strain which caused such trouble and so many deaths in Scotland; but I wonder should we not have been ahead of the posse, seeing as Ireland depends so much on the beef exports. I am surprised that we did not get going long before they ran into trouble in Scotland when we knew theoretically that this was possible. The beef industry is of such vital importance to us that we must be sure to catch these problems before anything starts.
Senator Callanan spoke about the improvement in the situation regarding hormones in beef. Antibiotic residues are still a problem. This was exposed again with pork recently. No matter what we say, consumers are rightly suspicious about antibiotic residues and, as a member of the medical profession, I would have to say it is a serious problem which we must continue to address. Unless we can get farmers to realise the devastating effect this has on their industry, I do not know what we can do. Of course not all farmers are involved in such practices, but the few who are cause dreadful trouble for everyone else. It only takes a headline in the newspapers like "Pork antibiotic residues rise again" for everybody to be extraordinarily worried about it and, as a doctor, I would have to say that they are quite right.
The levels of salmonella, staphylococci and campylobacter are still far too high, particularly in chickens. This is a very serious problem and we will have to look at the mode of production and whether we would be far better off having less intensive production and producing better quality chickens. I know the economics of the situation are difficult, but I cannot understand why people want cheaper and cheaper chickens instead of realising that a small portion of better quality chicken would be just as good. We must make great efforts to stress that the quality of the goods we produce may be more important than the quantity we buy. Almost all the cases of the lethal E-coli infection have featured ground beef and while controlling its quality is extraordinarily difficulty, it must be done. We must also explain to customers that they should consider factors other than price.
Small producers are introducing new goods but the products they use must be good also because it is not only the manufacture of convenience foods that is important. Some methods of production which destroy bacteria do not destroy the toxins arising from bacteria. We must also be aware of chemical and antibiotic residues in food. We must become increasingly able to trace the source of raw materials so that if there is a problem we can do something about it. Northern Ireland has good controls because its beef herd is recorded on computer, so it is able to make a much better case for its beef than can the rest of the UK. We should be in the same position.
For about 18 months we were in the ridiculous position that the environmental health officers were in a pay dispute with the Department of Health, as it was then called, so the excellent environmental health regulations were not enforced. We were eventually brought before Brussels on this matter and if there had been more publicity about the low level of inspection, people would have been shocked. Out of public-spiritedness the officers continued to inspect consumer outlets, otherwise there would have been serious outbreaks of food poisoning.
We must continually emphasise the importance of personal hygiene for all those involved in the food industry. One still sees people in shops handling both money and food. They may put on plastic gloves but they are no good if one handles both raw and cooked meat with the same gloves. Courses must be held for those involved in the food industry.
Rodent and insect infestation is taken too casually also. I hope the £20 million given to the GAA will enable them to adhere to the food safety regulations in Croke Park so that we do not have a repeat of the events following the All-Ireland Final in which everyone could have suffered the most terrible diseases. It is unfortunate that when big penalties handed down by the courts are appealed, they are reduced to barely one-fortieth of the original amount.
The importance of basic public health safety measures cannot be underestimated. Fridges and freezers are constantly overloaded and frozen food is left to thaw yet no one takes much notice. Cooked chickens are sometimes left in warming cupboards which would have been described as "incubation cabinets" when I did bacteriology. The cabinets do not keep chicken at a temperature which keeps bacteria at bay. Some fast food outlets — which I will not name from a sense of decency and in the hope that environmental health officers will inspect them — store food in a manner which encourages incubation rather than the proper maintenance of food.
Food safety does not simply involve preventing bacteria and keeping places clean. We also need a good knowledge of what our food is. There has been much talk recently of trace elements such as copper and selenium, a considerable amount of which is present in animal food. We are not sure how this is passed on to humans and what effect it may have on human health. I urge the Minister to encourage research in the Department on food safety, no matter how bizarre it may seem. It is a good idea to be ahead of the posse so that if there is a problem we can show we have analysed whether it has serious implications for animal or food health. Green is good and our food products are generally excellent but we must put Irish consumers to the forefront. When they are satisfied we will have no trouble promoting our food internationally.
I welcome the Minister, Deputy O'Keeffe, and thank him for giving his time. He is committed to the development of the farming sector and Bord Bia. I compliment the board on its excellent work. The beef sector had difficulties in the past couple of years and perhaps extra funding for the board would enable it further to promote Irish food. I compliment previous speakers for the points they raised; I would have made some of them but there is no need to repeat them. I thank the Minister of State and the Minister for Agriculture and Food for the provision in the budget of money for headage payments and installation aid.
At a recent meeting of the Committee of the Regions in Brussels member states displayed their native foods and I compliment Bord Bia for the excellent display of Irish food. It was my first opportunity to see their display outside Ireland and it was praised by people from all over Europe.
The bottom line is what the customer requires. A food quality assurance scheme has been introduced over the last year to 18 months. There is now complete traceability of food, not least in the beef sector which has been in the greatest difficulty. Customers rightly want to know from where their beef comes and we can now reassure them.
Bord Bia wants to develop and expand markets for Irish food around the world. Senator Quinn should be complimented for his comments on the beef sector. His supermarket group ensured that its customers knew the origin of their beef. In conjunction with Teagasc it selected many top beef producers in my county. Long before we began to speak about the need for traceability, Senator Quinn had the foresight to ensure his customers knew from where the meat in his supermarkets came. Giving the name of the farm and providing a photograph of it must give customers a great deal of confidence in the beef for sale in his supermarkets.
Whether the Food Safety Authority comes under the auspices of the Department of Agriculture and Food or the Department of Health and Children, I have no doubt that the quality of food production will be maintained without any problems. I do not think the farmers or the Department of Agriculture and Food would have any problem with it coming under the Department of Health and Children.
There are huge markets for Bord Bia in countries such as Italy, which has a population of 60 million people and imports more beef than our total annual production. It must ensure our beef is sold in such markets. The price difference between Ireland and England, France and Germany varies between 10p and 25p per pound. Our beef producers hope Bord Bia will actively chase these markets.
Bodies such as Bord Bia must remember that for every animal slaughtered farmers pay approximately £1.50 into the funds of such bodies and are looking for results in terms of equality of cattle prices. This is an opportune time for Bord Bia to prove its worth and deliver a good return to farmers for the levies they have been paying for a number of years.
Bord Bia's importance is immeasurable. It has done an excellent job over the years and we support its work. However, there are areas in which we hope it can further promote our produce. I concentrated on the beef sector because that is where the real problem is, in addition to the current problems in Holyhead where lorries are being turned back. I know the Minister of State, Deputy O'Keeffe, will make every effort to ensure that the Minister and the Taoiseach have that matter settled quickly. The Welsh farmers have problems but not to the same extent as Irish farmers do.
Previous speakers outlined many points which I had intended to raise. I compliment Bord Bia on its promotion of Irish produce around the world and repeat the importance of reaching a wider market.
I welcome our friend and colleague, the Minister of State, Deputy O'Keeffe. My late father, who was a Member of this House, used to say that a medical doctor was not always the best choice for Minister for Health but a farmer was always an excellent choice for Minister for Agriculture. The Minister of State has vast experience in agriculture and he brings very valuable expertise to the Department. I wish him well.
I am delighted to have this opportunity to review the workings of Bord Bia, which is a relatively new institution. As the Minister of State pointed out, the board arose out of a real need which was identified by Administrations over the past seven or eight years. It has developed a real international dynamic.
I have a particular interest in international food exhibitions because a close friend of mine who lives in Drumshanbo, County Leitrim, Mr. Noel McPartland, heads up a small company and now acts as a consultant for about six food companies — as Senator Caffrey said, small can become large — and has attended most of the 19 international exhibitions at which Bord Bia was represented. Perhaps the Minister of State has met Mr. McPartland. Through him I have gained a valuable insight into the workings of Bord Bia at international level and the income derived from its successful presence at major international food exhibitions. We are not always aware of this activity because such exhibitions are mainly directed at wholesalers. The success which derives from the commitment of the Minister of State's staff and Bord Bia, who market Ireland, should not be underestimated. This is an opportunity to commend them on their valuable work on behalf of Ireland.
I know the Minister of State is taking note of the suggestions which have been made. I have a further suggestion which arises out of my local experience in Leitrim. For many years there was a very successful jam manufacturing company in Drumshanbo called C.S. Laird whose brand name was "Bo Peep Jams". Sadly, due to the harsh winds of competition and a downturn in the jam market in the 1980s, the company no longer manufactures jam. However, a company called Leitrim Foods rose, phoenix like, out of the ashes of that state of the art facility and is developing the pasta market. The company is owned by a major player in the food industry, Kepak, which guarantees its financial stability. It is a significant contributor to the local economy in Drumshanbo, which has approximately 700 inhabitants and employs 30, and the number is growing.
There is also a 10,000 square foot advance factory in Drumshanbo which has been idle for 11 years. Forbairt has taken an option on this facility from IDA Ireland and has attempted to induce primarily food based industry to the area but without great success. I understand there may be a client who is more positive in his aspirations than previous clients. We await developments with interest.
Does the Minister of State consider that he has a role in developing clusters of industries in parts of Ireland which have been identified as conducive to the development of a food industry? Could IDA Ireland or Forbairt be persuaded to attract investment to areas which have clusters of food companies, in the same way hi-tech companies have tended to cluster in the mid-west or specific kinds of industry tend to locate in Dublin? Perhaps the Department would have a role to play in liaising with Forbairt and IDA Ireland in this regard.
When the Minister and his officials travel abroad to sell Irish food at food stands do they have other roles? For example, is there any liaison with IDA Ireland and Bord Bia at trade fairs, which are attended by huge numbers, regarding inward investment? While I appreciate that the thrust of marketing at such events is in the sale of Irish food to the retail sector, perhaps entrepreneurs attending such fairs could be persuaded to locate their food industries in this country.
Has the Minister considered establishing a national register for the burgeoning restaurant industry? At one stage people here were embarrassed about the presentation of food. Not long ago if one travelled on the roads after 2 p.m. it was virtually impossible to find an outlet that served food. Thankfully that has changed, although we have now gone almost to the other extreme in developing a fast food culture.
The hotel and leisure industry has awoken to the possibilities that exist and there are now excellent restaurants in the most unlikely places which appear to thrive on word of mouth. If one wishes to stay in a hotel, a bed and breakfast, a country farmhouse or whatever one can consult the relevant Bord Fáilte guide. The star system indicates price and quality and in almost all cases one gets what one pays for. However, that is not always the case when ordering food from a menu. There does not appear to be any national co-ordination on the presentation and palatability of food.
Traditionally, Ireland has not been seen as a location for consuming food although we have developed a great image abroad for the production of food, with the emphasis on the beef and dairy sectors. Does the Minister see any possibilities in encouraging people to visit Ireland to sample our food in the same way that people visit France for gourmet food and for wines? We have not addressed this issue successfully. People abroad would be surprised at the suggestion that they should visit Ireland because of its food. Despite this, a number of Irish foods have won international awards. Ireland now has the best cheese; we have beaten the Swiss and the French in the development of our cottage cheese industry.
We all like a good meal and most people who can afford it do not mind paying for good food. Yet many eating establishments continue to have bland menus consisting of the traditional meat and two vegetables, preceded by packet soup and succeeded by trifle or fresh fruit salad from a tin. In this regard, the standard of food presentation and palatability in this House has improved one hundred fold over the past number of years. I compliment the kitchens in Leinster House. Visitors, Members and the staff have found their produce outstanding, even if the prices continue to increase. It demonstrates what can be done under the supervision of an imaginative chef who takes care and pays attention to food.
I am not sure that food establishments have cared sufficiently for the consumer and the industry has suffered in consequence. Conversely, bed and breakfasts maintain excellent standards in food. Perhaps there is a lesson to be learnt here. Good, wholesome, well prepared and well presented food is the norm in almost all bed and breakfasts and they are thriving. Is there any merit in the suggestion that some kind of liaison be established between the Department of Agriculture and Food, Bord Fáilte and other tourism interests with a view to enhancing Ireland's image to ensure that not only is food sold abroad but people will visit the country to sample our food products?
I pay a warm tribute to my friend and colleague, Senator Quinn. He would be the first to admit that he is in the business of making money. However, he has adopted a patriotic approach to his expertise. I am not aware of any other country in the developed world where customers get a checklist which separates home based products from all other products. That is a marvellous concept and the Senator is to be complimented for it. After shopping in Superquinn in Lucan I have been embarrassed on occasion at the ratio of non-Irish to Irish food in my basket. I also compliment the Senator for his excellent staff. It is what one expects from someone who has a hands on approach to his business.
I am conscientious in my purchases. How relevant is this concept to many people who are not consciously aware of buying Irish food? I understand the service has been offered to other supermarkets. As Senator Henry said, the first client should be Marks and Spencer. It is getting away with murder in what it is doing. However, we operate a free market and in support of Senator Henry I suggest that consumers vote with their feet. If they cannot get Irish made food in Marks and Spencer products they should go to Superquinn or another shop where they can buy Irish made food.
Will the Minister of State consider, in conjunction with the Committee on Procedure and Privileges, staging an exhibition within the precincts of Leinster House, similar to that in the House of Commons, to highlight the best in Irish food for visitors to the Oireachtas. We should promote our best foods. I am aware that there are restrictions on space in Leinster House, but, in the context of the ambitious plans of the Minister of State at the Department of Finance for an extension to Leinster House, the Minister of State might seek some space for such a food promotion. Perhaps it would be possible to relocate one of the food exhibitions from abroad here. I commend this report and wish the Minister of State well.
This has been an excellent discussion and many Senators participated. Their contributions have established Ireland as the food island. The praise for Bord Bia is well merited. It needs support more than ever at this time, given the difficulties it faces in market development and promotion. Bord Bia receives some of its finance from the beef, pig and sheep sectors and it also carries out consultancy work for individual firms. Market development and promotion is the organisation's role. It takes the manufacturers to the multiples to identify market requirements and assists them in fulfilling those.
I thank my officials who accompanied me throughout the debate. I will attempt to reply to as many of the points raised as possible. Senator Tom Hayes referred to the Bord Bia legislation. The original legislation was introduced by the then Minister, Deputy Walsh. Deputy Yates put forward amending legislation to allow for greater producer representation, a measure we all supported. The Senator also referred to consumers' concerns, disease status and wild statements. We have no control over wild statements, although politicians are often blamed for making wild statements. We should be prudent in the statements we make about the food industry, particularly with regard to beef and other meat products.
I agree with the Senator's points about brucellosis and bovine TB. They have cost the country millions of pounds due to a lack of discipline. It is a matter in which I have a keen interest. With regard to brucellosis, there is a small mischievous element and I am working closely with the veterinary service in the regional offices and in Dublin on the matter. I had a worthwhile meeting in this regard in Fermoy recently. The work of the veterinary staff is excellent. They have identified the problem and we must face up to it. If we can control the use of illegal growth promoters and the mischief in that regard, we can take the disease issue in hand once and for all. We could save many millions of pounds. I am delighted to hear an Opposition speaker promoting that approach. We must maintain a disease free status.
The Horizons exhibition was excellent, presided over by the then Minister, Deputy Yates. However, there is a cost factor involved in such an event and if one held such a show year after year it would lose its usefulness. There will be an opportunity in 1999 with the staging of the International Beef Congress, an event that was well won by Bord Bia. I compliment Mr. Michael Duffy on securing that event for Ireland. We could build around that conference an exhibition similar to Horizons which would be a showcase for Irish food.
We are working hard on food quality assurance. Senator Hayes referred to the REPS and the suggestion he made could be difficult to police. There is an organic farming scheme in place under which his suggestion might be addressed. Labelling might also be a problem. However, it is an interesting suggestion and we will examine it.
The county enterprise boards do an excellent job. They were set up to help entrepreneurs and small business and they have examined the food industry in certain areas. Their involvement would not be in conflict or interfere with other market situations. I agree with the Senator that we have the best food in the world and that the consumer has become more demanding.
Senator Kiely spoke about times past and how the farming industry has been modernised. We have come a long way, as I pointed out in my opening remarks. Senator Quinn gave us food for thought. He mentioned the housewife who telephoned one of his shops this morning when he was present. Food safety is centre stage and everybody in the Department recognises that. We accept that the consumer is king, a point I have made on numerous occasions, and we yield to the consumer's demands.
We are putting in place a comprehensive scheme of traceability to identify products from stable to table, so to speak. I hope that system will be ready early next year and it will be backed by legislation under the beef assurance scheme. Information will be available in that regard. I have little to say on the Food Safety Authority. It is making progress and I welcome the appointment of Dr. Pat Wall as chief executive. Legislation is in preparation; so, in effect, I am reporting progress in that regard.
Senator Quinn referred to the possibility of an independent office with responsibility for food. I have special responsibility for food in the Department of Agriculture and Food. I am interested to hear Senator Quinn's views, expressed as they are from the retail perspective. I would like him to call to see me in the Department. I defend the staff in the Department — they are among the most dedicated and the best in the country. I might not have said that when in Opposition because I was unaware of what they do. However, since taking office I have discovered the sincere commitment and dedication of the staff, who are often maligned wrongly. I understand the Senator's point about separating food from agriculture. However, I defend the administrative, technical and other staff of the Department.
Currency has a major effect on the food business. We are dependent in that regard but the single currency will help in the years ahead. The Senator mentioned seafood and more food should come within the remit of Bord Bia. We must strive towards that to ensure a more co-ordinated approach to food promotion and market development.
Senator O'Brien mentioned mushrooms. This is the great success story of this age. He also mentioned the poultry, pigs and sheep sectors. Counties Cavan and Monaghan are the best counties in terms of using indigenous resources. Wonderful work is being done there. Senator O'Brien also referred to the job losses resulting from the Avonmore-Waterford amalgamation. I sympathise with the people who will lose their jobs. However, we must recognise that the dairy industry must be rationalised. This is a major example, but the dairy sector worldwide is being transformed through huge mergers. For example, there were major mergers and amalgamations in America and Europe recently. If the Irish industry is to survive and be competitive, particularly in the context of Agenda 2000, an enlarged EU and the WTO negotiations, we must have a scale of operation. The trend is towards mergers and Government policy is rationalisation and streamlining in the dairy industry to ensure it is competitive in the next millennium.
Senator Caffrey mentioned indigenous industry and more food innovation centres. I congratulate the Senator on the success of the operation in Ballina. The Senator mentioned that products such as sauces, jams, chocolates and drinks can be developed in innovation units. It is an area in which Forbairt will have an interest.
Senator Callanan mentioned the embargo on the ports. I agree with his comments because the bulk of our exports are to the UK, which is our nearest market. The Senator also mentioned boned beef, a matter to which I referred earlier. He also referred to the use of drugs in agriculture. However, there is no negligence or lack of supervision on the part of the Department of Agriculture and Food with regard to drugs, animal remedies, hormones or inhibitors of any nature. The area is extremely well policed and results in the last year proved that the Department is on top of its job. We should be proud of our record in this area. Many of the drugs on the market come within the remit of the medicines board, which is a separate organisation.
The Senator mentioned the beef market. The UK market is worth £170 million a year with most of the products going to the major retailers. The continuance of these exports is vital and everything must be done to keep the market open. The farmers opposing the imports illegally broke the seals on the products. That is not acceptable, particularly from a hygiene viewpoint and in the absence of inspectors. I am most surprised this took place at the port. It is illegal for somebody to jump on a truck, break seals and inspect cargo without supervision by British health inspectors. This should not happen. It is difficult for meat manufacturers and processors who worked hard on the marketing of Irish processed beef abroad, especially in the UK where some branded products are sold to major multiples.
They had a great deal of vacuum packed meat on the bone prepared but that work must be undone and the industry will suffer a loss as a result. A number of plants are involved, but I assure the industry that it has the support of the Taoiseach, the Government and the Opposition and everything will be done to resolve the problem as quickly as possible. This cannot continue because Ireland is an exporting country. I was told by some farmers recently that beef in the UK was making 103p a pound. A price of 83p was quoted during the debate so the comments of the Welsh farmers are surprising. I am not sure of the position but that is what the farming organisations told me.
Senator Henry referred to labelling. This is governed by an EU Directive 179/12 and it is illegal to mislead consumers regarding the origin of products. This directive is implemented by the Director of Consumer Affairs. The Senator referred to products which are packaged but not manufactured in Ireland. Consumers are fooled because the product does not state the origin of the product. The Senator's contribution was most helpful. She mentioned excellent home produced goods and said that women are supposed to buy Irish food. She quoted the example of Irish bottled water, which is the flagship of our beverage industry and I agree with her practical comments. The Senator said we are slow to develop a computer system regarding health issues. This matter relates to traceability.
I had an excellent meeting with Ms Caroline Gill and Dr. Dargan of the Consumers Association of Ireland soon after I was appointed. They are people with whom I can work and Senator Henry is correct that there should be more dialogue with the association. A representative of the association is on the subsidiary board of Bord Bia and recognition has been given to this area.
I congratulate Senator Moylan on his election to the Seanad. I know him from the other side of business for many years and I am sure he will be a fine Member of the House and will leave his mark. He mentioned extra funding for Bord Bia in difficult times. I dealt with the funding of the board earlier. If there is a surplus of beef, further intervention storage will have to be sought. That will not be easy and it will be a matter of negotiation. However, I am sure the Minister will be a capable negotiator in Brussels and will address the problem there.
Italy was mentioned as a major market. Produce has been marketed there and Bord Bia is represented in Italy. There was a beef promotion campaign recently in Milan and it was very successful. No country is being neglected and the board has excellent staff abroad.
Senator Mooney extended my brief to other lands and Departments. I liked the "Bo Peep" marmalade which was available some time ago. An advance factory and inward investment are matters for Forbairt and IDA Ireland. The Senator also mentioned a cluster of food companies and the role of the Minister in that area.
The Department is being proactive in the area of food development, and staff are very helpful in directing inquiries to the relevant sections and offices. We see food in terms of it being product taken from private producers which will benefit farmers. Both Leader and the enterprise boards provide help in this area.
With regard to the role of Forbairt, those involved with this body travel abroad to make contacts and gather information which is communicated to the relevant Departments and State agencies on their return.
Senator Mooney also asked about the establishment of a register for the restaurant industry. I must inform him that this falls outside my brief. He also referred to attracting tourists to Ireland to sample Irish cuisine in places such as Kinsale.
The Senator is correct that there is room for development in respect of farmhouse cheeses. I understand that there has been much co-ordination in this growth area. I do not wish to repeat myself, but the bodies best equipped to provide aid to producers of farmhouse cheeses are Forbairt and the county enterprise boards.
Bord Fáilte has an excellent register of bed and breakfast establishments and country farmhouses. The board is a semi-State organisation and we will endeavour to provide it with any assistance it requires in this regard. If we can promote the concept of Ireland as a food island throughout the world, we will do good work.
Senator Mooney's final point related to an exhibition of food in the precincts of Leinster House. I will put his suggestion to my officials to see what can be done. However, there will be a cost factor involved.
As I may not come before the House again before the end of the session I wish everyone a happy Christmas and a prosperous 1998. I look forward to working with Senators during the next session. The points raised today will be considered. Senators contributions are welcome and have been helpful.
An Leas-Chathaoirleach
When is it proposed to sit again?
Next Tuesday at 2.30 p.m.