Dáil Éireann Debate, Tuesday - 2 February 2010
121 Deputy Charles Flanagan asked the Tánaiste and Minister for Enterprise, Trade and Employment if the EU Commission proposal COM(2009)591 on the European food supply chain and marketing will provide for Irish and European action for rebalancing the food supply chain; if the proposed code of conduct in the grocery retail sector will be redundant if these proposals are implemented; and if she will make a statement on the matter. [4975/10]
View answerMy colleague the Minister for Agriculture is directly involved in the discussions regarding the various initiatives proposed in the Commission's Communication and I, and my officials, are working with his Department in developing Ireland's position regarding these proposals.
As the Deputy may be aware, the EU Commission's Communication of October 2009 on "A better functioning food supply chain in Europe" followed on from earlier initiatives by the Commission in relation to the significant fluctuations in the price of food in recent years, the differences in prices along the supply chain and the effects these fluctuations were having on the various parts of the supply chain and on consumers. The Communication sets out a number of possible policy initiatives to overcome the challenges faced by the European supply chain. These initiatives are essentially concerned with:
Promoting sustainable and market-based relationships between stakeholders in the food supply chain;
Increasing transparency along the chain to encourage competition and improve its resilience to price volatility;
Fostering the integration and competitiveness of the European food supply chain across Member States.
As regards the interaction between the initiatives proposed in the Commission's Communication and the commitment in the Renewed Programme for Government to introduce a Code of Practice in the Grocery Goods Sector, I do not see any conflict between these proposals. Whilst both indeed are concerned with the relationships between stakeholders in the food supply chain, the Communication fully recognises that sweeping generalisations cannot be made in relation to the state of relationships between stakeholders and that due cognisance must be taken of local market conditions. In the circumstances, therefore, I do not see that the introduction of a Code of Practice for the Grocery Goods Sector as proposed in the Programme for Government and the implementation of any proposals that may emanate from the discussions on the Commission's Communication as being mutually exclusive. It is the case that other Member States have introduced various measures to regulate the relationships between stakeholders in the food supply chain notwithstanding the publication of the Commission's Communication. It should also be appreciated that the discussions on the Communication are at a very early stage.
The importance of the food sector and food supply chain cannot be overstated, particularly in relation to a food exporting country like Ireland. I very much welcome the Commission's initiative in tackling the macro issues affecting the European supply chain. In terms of the domestic position, I am satisfied that the introduction of a Code of Practice will also help to tackle the issues affecting the grocery goods sector in this country. I am strongly of the view, therefore, that both these initiatives will help to increase transparency along the food supply chain and to promote sustainable and market based relationships between stakeholders, thereby, ensuring that the food sector can continue to prosper and deliver value right along the chain from the farm gate to the consumer.
