Dáil Éireann Debate, Friday - 16 December 2016
451. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine to set out the status of the progress towards the programme for Government commitment to support for further action at an EU level to deliver greater transparency and fairness in the food supply chain; the number of Agriculture Council meetings at which he raised this subject with his EU colleagues; and if he will make a statement on the matter. [40882/16]
View answerI am pleased to inform the Deputy that following a series of discussions the Council of Agriculture Ministers agreed this week on Conclusions on the strengthening of farmers’ position in the food supply chain, and on tackling unfair trading practices. The agreed text refers in particular to the need to tackle unfair trading practices. Council took note of the fact that a regulatory approach at EU level could complement existing voluntary initiatives, and called on the Commission to undertake an impact assessment with a view to possibly proposing an EU legislative framework.
In broad terms I welcome the provisions in the draft conclusions. The Presidency has reflected Member States’ concerns in relation to tackling unfair trading practices, where the need for an EU legislative framework proved to be one of the more contentious items during the discussions. I welcome the call in the Conclusions for the Commission to provide legal clarity in relation to exemptions from competition law for producer organisations and co-operatives, and note the inclusion of references to the development of futures markets, which is something that is being actively pursued in Ireland. I look forward to the Commission now acting on these Conclusions in the context of its future efforts to strengthen the position of the farmer in the food supply chain.
One of the key elements in protecting the producer’s position in the food supply chain is providing a means by which primary producers can strengthen their position when negotiating the sale of their produce. The European Union (Beef Producer Organisations) Regulations 2016 S.I. No 49 of 2016 implement Commission Regulation No. 1308/2013, which provides the basis for the recognition of producer organisations in the beef sector. The Regulation allows, inter alia, primary producers to collectively negotiate contracts for the supply of cattle for slaughter. In order to assist groups of primary producers who wish to become recognised Producer Organisations an application to the European Commission as part of the second amendment to Ireland’s RDP has been submitted, which provides for the funding of start-up activities for Producer Organisations in the Beef Sector. Funding will be provided for prospective POs to engage a facilitator to help with recruitment and start-up activities. Facilitators might be advisors, business planners, legal advisors, accountants etc. Advisors will fall into one of two categories; giving advice on setup of the PO’s statutes, fulfilling Department requirements etc, or advice on business planning and membership recruitment. Payment for advice in each of these areas will be capped at €1,500 in accordance with the provisions of the RDP regulation. However, the PO is free to engage further advice at their own cost. Total expenditure will be capped at €300,000.
It is expected to have approval of Ireland’s second amendment to the RDP in early 2017 and once this is received, funding will be made available to recognised Producer Organisations in the beef sector and arrangements for applications for recognition of Producer Organisations will follow.
At major wholesale and retail level, the Consumer Protection Act 2007 (Grocery Goods Undertakings) Regulations 2016 which were signed by the Minister for Jobs, Enterprise and Innovation, entered into force on 30 April 2016. The Regulations are enforced by the Competition and Consumer Protection Commission (CCPC). Since that date, all major retailers and wholesalers have nominated liaison persons for the purposes of the Regulations. The CCPC has engaged with key stakeholders and has held both bilaterals and a seminar with the main retailers and wholesalers to raise awareness of the requirements of the Regulations. Annual compliance reports for the period 30 April - 31 December 2016 have to be submitted to the CCPC by the relevant retailers and wholesalers by 31 March 2017. Ireland’s legislation is one of the more advanced among member States, some of whom rely on voluntary codes of practice.
