We are now in public session, so I will ask Deputy Morgan to comment on his report.
Report on Agri-Food Sector: Discussion.
I will give a brief overview, Chairman. Quite a bit of research went into this report, which is more than I thought would be involved at the beginning of the process. The report is divided into seven sections. One deals with the importance of the agri-food sector. If people read that they will see how important the sector is, including the huge opportunities therein. The report deals with the challenges facing the agri-food sector, human capital, and the development of enterprise, which is a very interesting section. The report also examines the agri-food sector and the EU, as well as including an industry survey and three sub-sectors.
Members of the committee are aware of the difficulties facing the economy. Indigenous enterprise probably offers one of the best opportunities to work our way out of this situation. We have a well-educated workforce, many of whom are currently unemployed. I believe, as other members do, that these people, whether or not they are unemployed, are ready for the challenge of working their way out of the current economic difficulties. These well-educated people who are currently unemployed can help develop new models, processes and efficiencies in the agri-food sector which would streamline the entire industry. That is extremely important. It goes without saying that as an island we have a strong green image internationally, and we can take advantage of that as a selling point. We know the example of Kerrygold and the strong brand it has in continental Europe, particularly Germany and France, and we should tap into this more strongly.
As is stressed in this report, one of the reasons small industries have not really got their act together is that they are largely small units. The report deals with clustering, strategic alliances and networking. There is a particular example given in the form of the Fuchsia brand in west Cork, which has become a regional brand. Deputies Clune and O'Keeffe will know all about it and how it provided strength well beyond those of the individual units in terms of marketing opportunities, process development and so on. I visited a number of shops in the west Cork area and saw first hand the strong local recognition of the brand and the strong grá for it.
This leads me on to one of the most important aspects of this report, which starts at page 85 and continues on page 87; namely, country of origin labelling. I strongly encourage all Members of the Oireachtas to consider this important issue. There is a process known as significant transformation whereby, if a product comes into the country and undergoes a minor tweaking here, it may be presented on retail shelves as an Irish product. Not much adaptation is required; chicken from Taiwan, from example, after a small change, may be labelled as Irish chicken. This is all governed by EU directives and, to some extent, the WTO. However, there is an opportunity for us to consider how we can deal with the issue of country of origin labelling. That should be the focus of this report; we should take one strong item from it. We must investigate whether we can alter the terms of the use of so-called country of origin labelling because what some retailers are getting away with at the moment is a disgrace. The Fuchsia brand in west Cork demonstrates adequately that people will buy what they perceive to be a genuine high-quality Irish product as opposed to something that is pretending to be a genuine product. We are not against EU rules, although the rules and directives need to be reformed.
The position advocated in the report, which is to commence with a strong lobby across Europe, is similar to that being advocated by the Departments of Agriculture, Fisheries and Food and Health and Children, which are the two lead Departments with regard to country of origin labelling. We are on-side with them. What the whole issue needs is — I was going to say a kick up the ass, but maybe that is not parliamentary language. We certainly need somebody to take a good run at it and this is an opportunity to do so. I commend the draft report to the committee and I am happy to take any questions or comments.
I thank Deputy Morgan. This is a good report and the heart of it is the labelling issue, which is dealt with really well from a European perspective, an Irish perspective and a consumer perspective. There is no question about it; survey after survey has indicated that consumers want to know what they are buying. They want the label to be clear; they want to see the country of origin; they do not want text on the label of such a size that one would need a microscope to read it. They would like to see what additives are present and whether substantial transformation has taken place, as Deputy Morgan described. This would be a tremendous boost for the agri-food sector, the consumer and the farmer.
We must find a mechanism, working with our European colleagues, under European law and with the Irish position, to deal with this. In very difficult times, we must support farmers and consumers. Consumers vote with their hands. I know that faced with a chicken labelled as being from Thailand and one labelled as being from counties Carlow, Wicklow or Monaghan, the Irish consumer will pick the Irish product. Consumers have confidence in Irish food, but it is the labelling that is confusing things, and we must address this if we are to move forward. Accountability and legibility must be improved so that consumers are offered a key choice.
I commend Deputy Morgan on his extensive report. I agree with the points made about country of origin labelling. The analogy he made was with the Fuchsia brand, which is quite strong. A delegation from the committee, including the Chairman and Deputy Calleary before he was elevated to Minister of State, went to Brussels, and one of the key themes of that trip was the issue of labelling. It was difficult, as the Commission was quite against it, and we had quite lengthy interviews and hearings on the subject.
The Joint Committee on Agriculture, Fisheries and Food also feels strongly about this issue. We should continue to highlight it because it is very important. If change will not happen at EU level, there may be some way to achieve our aims as the Fuchsia brand has done. It is a means of identification which sends out a clear message to the consumer. The issue of food labelling is becoming a serious one. Consumers do not know what is on their shelves and they are not interested in the small print on the back of the packaging. The labelling must be clear and identifiable.
This committee, under the chairmanship of Deputy Penrose, has had a particular interest in this area. On behalf of the committee I thank Deputy Morgan for an excellent report, which is comprehensive and goes into great detail. The proposal is that we adopt and publish the report as a committee report and that we launch it at a reception in the near future. Once again, I thank Deputy Morgan for his work.
I do not dissent from that. The report is quite comprehensive and I commend Deputy Morgan on it. However, it has been circulated only this week and I must confess that in the time I have had it, I have not had an opportunity to go through it in great detail. I would like members to have one further opportunity to comment if they wish before taking it further.
That is fair enough.
I commend Deputy Morgan on the report and the speed at which he produced it. How can we make sure it is implemented? We could meet the retailers. I read in the Irish Farmers’ Journal in the last half hour that there is a stock of bacon on the shelves of Tesco which is not branded with a country of origin. Tesco is ignoring Irish products and making an issue of it. Dawn Farm Foods has a contract with Subway for €800 million but there is no guarantee that the products in those shops, of which there are quite a number, will be Irish. There is much work to be done. Much effort and skill have gone into the report, but there is much more to do if we are to get products of Irish origin on to the shelves. The retailers are exploiting the Irish consumer in this regard — there is no doubt in my mind about it — and the sooner they are brought to heel, the better.
I suggest we include the report for discussion by the committee for the next meeting, which will be in two weeks' time.
Absolutely, a Chathaoirligh. I thank the committee clerk and the team for giving me the opportunity to produce this draft report.