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Beef Industry

Dáil Éireann Debate, Tuesday - 10 November 2020

Tuesday, 10 November 2020

Questions (34)

Denis Naughten

Question:

34. Deputy Denis Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment the requests he has received in the past 12 months from his ministerial colleagues to carry out a market study under section 10(4) of the Competition and Consumer Protection Act 2014; and if he will make a statement on the matter. [35118/20]

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Oral answers (6 contributions)

In September 2019, Dáil Éireann unanimously supported a motion on the beef sector that called on the Minister for Business, Enterprise and Innovation under section 10(4) of the Competition and Consumer Protection Act 2014 to request the Competition and Consumer Protection Commission, CCPC, to carry out a market study and analysis on the nature and scale of consumer and beef farmer issues in the beef market and make recommendations. This has yet to be implemented.

The Competition and Consumer Protection Act 2014 enables the Minister for Enterprise, Trade and Employment to request the CCPC to carry out a study or analysis of any issue relating to consumer protection and welfare, any practice or method of competition affecting the supply and distribution of goods or the provision of services, or any other matter relating to competition and to submit a report to him or her.

No requests have been made by the Minister to the CCPC to carry out a market study or analysis in the past 12 months, nor has any other Minister requested to use those powers to request the CCPC to carry out a study for them.

In August 2019, the then Minister for Business, Enterprise and Innovation, Deputy Humphreys, made a request to the CCPC to carry out a study of the public liability insurance market in Ireland. This study was requested as the issue of increases in public liability premiums for businesses was raised with her as a potential systemic threat to the existence of many businesses. Concerns were also expressed about the roles of insurance firms and intermediaries in the increased levels of public liability insurance premiums.

The study will compile a detailed assessment of the functioning of the market and make evidence-based recommendations as to how the Government may address the current issues around the cost and supply of public liability insurance. The CCPC commenced a wide range of activities to complete this study, including meetings with representative groups, public bodies, industry representatives and customers; conducting customer focused market research among a representative sample of businesses, community groups and sports organisations; issuing a public consultation paper to obtain the views of key stakeholders; analysing data that are available on the market; and undertaking desk-based research. We expect the chairperson of the CCPC to provide the report in the coming weeks.

Fourteen months ago, the Minister of State and everyone else in this House supported the proposition that an inquiry into the beef sector take place in this country. At the moment, we are telling beef farmers to come forward with the evidence and present it to the CCPC. I made a submission to the commission but the reality is that unless a whistle-blower comes forward to provide documentary evidence, it cannot instigate an investigation into the beef sector. Does the Minister of State believe that there are anti-competitive practices in operation within the beef sector? I believe that there are. The Government has a mechanism by which it can ask the CCPC, at the stroke of a pen, to go in, look at the industry as a whole and carry out a report. Let us see once and for all what is going on.

I am aware that during a debate on the challenges facing the beef sector in the Dáil on 18 September 2019, the Deputy tabled an amendment to a motion, agreed to on 26 September, proposing that the CCPC carry out a market study and analysis on the nature and scale of beef farming issues in the beef market and make recommendations. A request for the CCPC to undertake a market study or analysis under section 10(4) of the Competition and Consumer Protection Act 2014 is not a substitute for the commission undertaking its statutory functions by investigating an alleged breach of competition laws that are used by the commission in different situations.

In 2019, the CCPC received a significant number of complaints about the beef sector and, as a result, commenced a detailed, extensive examination. The majority of the complaints related to five core issues: the similarity in the base price per kg offered by processors to beef farmers across all beef processing plants, dissatisfaction with the qualitative criteria for the payment of in-spec bonuses applied by beef processors to the importing of foreign beef, the operation of feedlots, distortion of competition and the impact of a reported monopoly in offal processing.

I will come back to my core point. There are two ways that a thorough investigation can be carried out. One is if documentary evidence comes forward, and that can only happen if we have a whistle-blower within the industry. The other option is for the Government, through the offices of the Minister and the Department, to direct the CCPC to carry out a market study and inquire into the sector. Is the Minister of State honestly telling me that he does not have concerns regarding the operation of the offal sector in this country? Every farmer, man and woman, in this country believes that a monopoly is operating in the offal sector. That has a controlling influence on the kill in this country. It is imperative that we have a separate independent inquiry and it should not be dependent on farmers finding evidence.

I can relay to the Deputy what has been relayed to me by the CCPC. It has reviewed the beef sector and following an extensive review and assessment of all the information it gathered, the CCPC announced in June 2020 that there was insufficient evidence of a breach of competition law to warrant taking any further action at that time. It stated that it would not launch an investigation into the reported practice in the beef sector.

One of the first bodies I met on being appointed Minister of State in this Department was the CCPC. One of the first questions I asked its representatives was about their attitudes to, and concerns about, the beef sector. They forwarded me a report, which I have read and am happy to forward to the Deputy. I am happy to go back to them again, based on the question that the Deputy has asked. If he has specific information that can help the CCPC, I am also happy to relay that to them.

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