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Seanad Éireann debate -
Thursday, 5 Nov 1998

Vol. 156 No. 18

Plant Varieties (Proprietary Rights) (Amendment) Bill, 1997: Committee and Final Stages.

Sections 1 to 4, inclusive, agreed to.
SECTION 5.

I move amendment No. 1:

In page 6, between lines 7 and 8, to insert the following:

"(2) Plant breeders' rights shall not apply to a variety containing a terminator system, where the inclusion of such a system inhibits the use of seed defined under the ‘farm saved seed exemption' referred to in section 19(1)(d) of the Plant Varieties (Proprietary Rights) (Amendment) Act, 1998.".

The reason for my amendment is the commercial value of seed used by farmers globally which has been estimated at between $60 billion and $75 billion. The difference in these values is due to the widespread farm practice known as plant back or farmers' privilege. Farmers often plant seed saved from a previous year's harvest for next year's production instead of purchasing certified seed from a seed company.

This practice is particularly common in the major field crops of high commercial value such as wheat and soya bean. To a lesser extent, it is common in some production regions for cotton and for potatoes in this country. Because these crops are over-pollinated parent plants transfer traits uniformly through seed to the progeny plants. Thus, for these crops, as long as the farmer is satisfied with the performance of the previous year's crops, there is a limited incentive to purchase seed.

Generally, the price of over-pollinated seed is a small premium over the commodity value of this seed. The premium is based on the cost of cleaning and conditioning the seed plus a charge to offset breeding of improved varieties. Only the hybrid crops, where progeny segregate into non-uniform populations with varying traits relative to their parent plants, is a practice of plant back selection.

However, with the onset of the new terminator gene technology, companies can prevent second generation progeny from the non-hybrid seed germinating. The economic climate of this new technology must also be noted. It comes at a time when many of the larger seed companies are being acquired by major multinational agro-chemical companies. The recent multi-million pound takeover by Monsanto of Delta and Pine Land See Company, producing an agri-business giant which wholly controls the new seed sterilising technology, is worrying. Again, it is not the science but the economic appliance of the science which causes major concern.

We have a unique opportunity to strengthen our farmer privilege as outlined in section 19 and to include this proposed amendment so as to legislate for this terminator technology, which was commercially announced on 11 May this year. The many areas and sections of gene technology must be legislated for in a case by case fashion. In this case, the amendment outlined will, in a forward thinking manner, allow for such effective legislation.

This newly patented technique that genetically alters seed so that it will not germinate if replanted a second time could jeopardise the food security of 1.4 billion people as these resource poor farmers in the southern hemisphere depend on farm saved seed. These farmers are responsible for feeding between 15 per cent and 20 per cent of the world's population.

Terminative technology is a powerful tool to control the propagation and reproduction of any crop. The principle of the Bill is to balance the rights of the breeder with that of the farmer to use farm safe seed. I remind the Minister of the historical background to the farm safe seed section. The right of the farmer to safe seed to grow a second crop is historically based in the threat of famine. It allows the farmer to grow a second crop to stave off starvation and ensure the survival of his family. Today we do not have that risk in Ireland but it exists in other parts of the world. While this legislation will not impact outside the State, it will set down a principle in the Statute Book and leave the door open for less developed countries to follow suit. For a country which prides itself on helping others facing famine, it will strengthen that position.

Companies with this new technology can hold farmers to ransom in relation to what they can charge for this seed. A copperfastened farm seed guarantee gives the farmer a bargaining chip to negotiate a more realistic price for this seed. At present in the United States, Monsanto, one of the largest seed producers in the world, is negotiating with the American Government for sole rights. If this happens we can be sure that the company will introduce the technology in all of its seed products. I am aware of the need for the introduction of terminator genes in genetically engineered plants as this prevents their proliferation in the environment. However, without the amendment which allows farmers to use farm safe seed, it will be obsolete. Having discussed this with officials in the Department, I have been informed that, on foot of legal advice from the Office of the Attorney General, the Minister does not intend to accept this amendment.

I wish to highlight other points. Many countries and humanitarian organisations in the EU and elsewhere now realise the full implications of this technology. The Dutch Parliament recently moved to oppose the European patent directive by appealing it to the European Court of Justice. The terminator patent was one of the key issues which promoted it to renew its objections to the patent directive. Rural Advancement Foundation International has launched an international campaign to stop the negotiations between the American Government and the subsidiary of Monsanto regarding the right to the terminative gene patent.

I urge the Minister to accept the amendment and leave the power in the hands of farmers and not solely in the hands of a small number of multinational companies.

I support the amendment. Of course intellectual property has to be protected and I understand why the patent rights are being introduced. While this legislation only applies to this State, one does appear to subscribe morally to the support of the terminator gene system. Senator Hayes has made a good case in asking how this will appear to Third World countries. We suggest we will give them help then support legislation which will be so detrimental to agriculture in those countries.

We have given serious consideration to the amendment and we have sought advice from the Attorney General. On his advice the amendment cannot be incorporated into the Bill. Plant breeders enjoy comprehensive rights under the International Convention for the Protection of New Varieties under the UPOV Convention of 19 March 1991. Under Council Regulation 2100/94, which came into operation in April 1995, those rights constitute a community plant variety right. The use of farmsafe seed is not a right but a limited derogation from the community plant variety right. Ireland is under international obligation to implement the breeders' right but the proposed amendment would instead abrogate the right in order to protect the derogation. The State has no authority to do this.

The primary purpose of the UPOV Convention is the protection of the rights of plant breeders, thereby establishing the identity of the variety's inventor and the protection of the plant breeder's exclusive right to reproduce and sell reproductive material of the variety and to authorise others to do so. Article 5 of the UPOV Convention is clear. There shall apply to the plant breeders' rights no condition for protection other than those specified and no provision is made for the exclusion of a variety with a terminator gene. The use by a farmer of a safe seed, under the UPOV Convention's optional exemption from the plant breeders' rights, is exercised in Ireland under the authority of Article 14 of Council Regulation 2100/94 on plant variety rights, which prescribes the conditions on which the derogation may be given. It does not include the exclusion of varieties containing terminator genes as a condition to give rise to the derogation on the use of farm safe seed. The derogation finds expression in section 19 of the Bill, which includes the use by farmers of farm safe seed among the acts exempted from the requirement of authorisation from the plant breeder.

The amendment would authorise the complete removal of the plant breeders' right to protect farmers from having to purchase new seed every year. This conflicts completely with our international obligations and Ireland is not permitted to legislate in this manner. The UPOV and EU agreements must be implemented as they stand. The plant variety protection system does not reach decisions on whether a variety is a good or bad variety but whether a variety is distinct from other varieties and is sufficiently uniform and stable under Article 5 of the UPOV Convention. Other legal regulations aside, in the EU varieties of agricultural crops cannot be marketed unless it can be shown it has a viable cultivation and use — VCU.

I have no doubt the emerging issues relating to new technologies in the plant world will be debated at political and technical levels within the international and European fora.

Amendment put and declared lost.
Section 5 agreed to.
Sections 6 to 24, inclusive, agreed to.
Schedule agreed to.
Title agreed to.
Bill reported without amendment, received for final consideration and passed.

I thank the Minister for his presence and the speedy passage of the Bill through the House.

Sitting suspended at 1.10 p.m. and resumed at 2 p.m.
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