Dáil Éireann Debate, Thursday - 20 May 2021
55. Deputy Brian Stanley asked the Minister for Agriculture, Food and the Marine if he has considered the introduction of a ban on below cost selling in the beef sector; and if he plans to take action to address same to ensure that farmers can receive a fair price for their produce. [26923/21]
View answerThe Unfair Trading Practices (UTP) Directive, which has now been transposed into Irish law, does not address below cost selling. Previously, a Groceries Order in place from 1987 allowed suppliers to specify minimum prices below which products could not be sold - this was revoked in 2006 as it was considered that it had acted against the interests of consumers and I understand that there were difficulties in enforcement.
The legislative powers to deal with issues such as below cost selling fall under the auspices of the Department of Enterprise, Trade and Employment, together with the Competition and Consumer Protection Commission, the statutory body responsible for enforcing consumer protection and competition law in Ireland.
As the Deputy will be aware, there is a commitment in the Programme for Government for the establishment of a new authority to be called the National Food Ombudsman (NFO) or similar, to enforce the Unfair Trading Practices (UTP) Directive. A two stage approach is being undertaken to deliver the commitment.
On April 28th, I signed Statutory Instrument No. 198 of 2021 which sets out the Regulations to give effect in Irish law to EU Directive No. 2019/633 on Unfair Trading Practices in business-to-business relationships in the agricultural and food supply chain. The Regulations will come into effect from 1 July 2021, and apply to agreements for the supply of agri-food products.
One of the key principles of the UTP Directive is to protect farmers and other weaker suppliers of agricultural and food products against stronger buyers. These Regulations will help to provide that protection and are a significant step in progressing towards a more even playing field for our agricultural producers.
The Enforcement Authority required by the Directive will, pending the establishment of the new Office, operate in my Department. The Authority will have the necessary statutory powers to investigate complaints, carry out investigations on its own initiative and initiate legal proceedings for breaches of the UTPs prohibited under the Directive.
Secondly, the establishment of the new Office requires primary legislation. The Office, whose remit will include the beef sector, will have a specific role in analysing and reporting on price and market data in Ireland and will also incorporate the UTP Enforcement Authority functions. In addition to establishing the new Office, the primary legislation may introduce rules that go beyond those included in the UTP Directive. It is important to be aware, however, that the Office will not be able to determine commodity prices.
A public consultation on the primary legislation needed to establish the new Office of a National Food Ombudsman or Regulator will be open until 26th May 2021 and all submissions under this process are welcome and will be considered.
I am committed to delivering an Office that will bring much-needed transparency to our sector that will ultimately help our farmers and primary producers. I encourage all stakeholders to participate in the consultation to help define the future role of the new Office.
