asked the Minister for Agriculture and Food if he will outline his Department's attitude to the increasing number of takeovers of agricultural co-operatives by private firms; and if he will make a statement on the matter.
61.
Ceisteanna—Questions. Oral Answers. - Agricultural Co-operatives Take-overs.
20.
asked the Minister for Agriculture and Food if his attention has been drawn to the unprecedented wave of mergers and acquisitions sweeping through the food industry worldwide as global companies strive to achieve global size in the battle for market share in the branded food and drink product sectors in which they compete; and whether the Irish co-operative structure is adequately geared to meet this competition.
I propose to take Questions Nos. 20 and 61 together. I am aware of developments taking place worldwide in the food industry. The Government's policy in meeting the challenge and opportunities in the food industry in the years ahead was set out in the Strategy for the Food and Drink Industry 1988-1992 and the National Development Plan 1989-1993. The Government's policy aims to encourage the development both of a number of large firms — who can compete on equal terms with the large multi-national food companies — and of smaller firms which also have a significant role to play in the growth of our food industry.
Co-operative and other enterprises involved in the food industry in this country have already recognised the need to adapt to changing circumstances and have taken action accordingly. Decisions of this kind are primarily a matter for the enterprises themselves. But any action taken must be in accordance with the Mergers, Takeovers and Monopolies (Control) Act, 1978, as amended, the administration of which is a matter for the Minister for Industry and Commerce.
I note from what the Minister says that he favours competition with international competitors. Since Larry Goodman's Food Industries moved into the acquisition of Bailieborough, Westmeath Co-Operative and others, would the Minister agree that their entry into the market has been fraught with controversy and concern at two levels: (1) that in the long term the industry will not necessarily gain from his presence and (2) that with 100,000 people at present engaged in the Irish Co-Operative Organisation it is felt the Minister should direct his attention and assistance to democratising and assisting in every way possible the extension of the co-operative movement, extending membership to employees of the industry and assisting them in having workers placed on the boards? Is the Minister aware that the main concern is that there is a massive concentration — consequent on Larry Goodman's control of the market — on the dairying and beef sectors, which control is detrimental to the average farmer?
May I dissuade a Member from referring to persons outside the House? These persons have no redress against reflections made on them in this privileged Assembly.
A Cheann Comhairle, I think Food Industries and the named gentleman are synonymous and indeed have now become synonymous with the take-overs of co-operatives.
This House should be circumspect in such matters.
As I understand it, co-operatives are democratic organisations and any decision taken by them is taken in a democratic fashion by their members, committees and management. Decisions to invest or to merge are primarily matters for the members of those organisations.
In view of the apparent collapse of the Government's strategy for the food industry, occasioned by the absence of its major ingredient, that is, the multi-million pound plan announced in 1987, what action does the Minister intend taking to gear up the co-operative movement to enable it to withstand the fierce competition from Europe post-1992?
The co-operative movement and industry are gearing up already and adapting themselves to this anticipated fierce competition. Government policy has been clearly outlined in the five-year strategy programme for the development of the food industry.
That is now non-existent.
That disposes of questions for today.