I thank the Chairman. Along with my colleague, Ms Kathleen O'Connor, I am pleased to have been invited to make a short presentation to this committee, which has an important role in respect of all EU matters, on the EU Green Paper on Agricultural Product Quality. As the Chairman said, agriculture and quality are key strengths of the European Union, particularly Ireland. The agrifood sector accounts for over a third of Ireland's net foreign earnings from primary and industrial production. Our exports in the sector are worth approximately €8 billion a year. Sales of this country's agricultural products are worth over €20 billion a year. The impact of the agrifood sector extends beyond those who are directly employed by it and the producers who supply material to it. The multiplier effect of the sector is noticed throughout the economy, particularly at regional level. The food sector is more important than any other sector in virtually every county in the country.
We have prepared a short document that sets out the background to the EU Green Paper. The discussions on the Green Paper, which are likely to last approximately 18 months, are at an early stage. Ms O'Connor and I will be happy to return to this forum at any time as the discussions develop. The European Commission is consulting interested parties on the question of how to protect the quality of agricultural products in the European Union without creating additional burdens for producers. The EU is facing significant international competition from low-cost suppliers outside the Union. In February 2007, the Commission organised a stakeholder conference in Brussels on the themes of food quality certification and the need to add value to farm produce. The conference was attended by producers, consumers, groups with expertise in quality assurance, policy makers and parliamentarians. It concluded that it is not easy to transmit the message that EU standards are among the toughest in the world. It found that while there is evidence that food certification schemes are having a positive economic effect, costs and difficulties arise for producers from the administrative burdens associated with the multiplicity of schemes.
The Green Paper has been drafted to initiate a debate on food quality at EU level. Its ultimate aim is to give producers in the EU an opportunity to enjoy market advantage over those in other countries who produce low-cost produce. Community producers have to adhere to certain requirements in addition to safety requirements. The Green Paper examines the extent to which quality is the most competitive selling point of EU farmers, arising from the high levels of quality and safety that the Union ensures across the food chain. As a first step, the Commission has launched a process of consultation on whether existing policy and regulatory framework instruments are adequate. It is considering how they can be improved and whether new initiatives can be launched. The process of consultation is open to all. The contributions that are received will be published on the Commission's website. The Commission has presented the Green Paper to the Council of Ministers, which will discuss it later this month. Following the public consultation phase, the Commission may publish a policy options paper, based on the contributions received, in May 2009. Such a paper is known in jargon terms as a "communication". A food quality conference is scheduled to be held in March of next year under the EU Presidency of the Czech Republic. Depending on the outcome of the process of consultation and discussion, etc., the Commission may draft legislative proposals in 2010.
The consultation document is divided into three parts. The first part, which deals with production requirements and marketing standards, asks whether EU marketing requirements which are above minimum food safety requirements should be maintained, left to self-regulation or extended to other products. The possibility of making it mandatory for the origin of a primary product — in the EU or otherwise — to be indicated on its label is also mooted in this part of the document. The second part of the document considers whether the EU quality regulations covering geographical indications and traditional specialties are meaningful. It queries whether they should be extended or curtailed. In relation to organic farming, the Commission focuses on how the EU market, rather than the policy, can be improved. The third part of the document invites comments on how certification schemes, including national quality assurance schemes and private sector retail schemes, might be adapted. It asks whether EU guidelines should be set out in this area and whether such guidelines would benefit EU producers.
In all, the consultation paper sets out 18 questions, which may be grouped under seven headings. The first group of questions relates to how EU product source, logo and marketing standards can be capitalised on. The possibility of limiting the imposition of mandatory marketing standards is raised. Over recent months, Commission decisions and Council agreements on the standards applying to certain fruits and vegetables, which may have been seen as being past their sell-by date, have been announced. This group of questions also relates to the appropriateness of having optional geographical indications.
The second group relates to new schemes, EU harmonisation of terms such as "farmhouse" or "mountain product", certification schemes, protection and tightening up the technical geographic indication schemes, namely, the PDOs and PGIs. Other areas covered include: geographical indications; further criteria and closer links with areas; how these could contribute to rural development and whether origin of raw materials for processed products should be indicated if they come from a GI source; environmental protection; and export potential.
The sixth group deals with the consistency and simplification of the geographical indication regimes which apply to agricultural foodstuffs, wine and spirit drinks and whether the same type of regime should apply to all. There are three indicators for Irish spirit drinks, namely, Irish whiskey, Irish cream and poitín.
The final group deals with traditional specialities guaranteed, which tend to be recipes such as soda bread, and regimes for the outermost regions of the Union and whether this regime is still useful and can give benefit to producers.
The Department's position, which is similar to that of many member states, is that it welcomes the opportunity presented by the Green Paper to consider how high EU food quality standards can best be communicated to the consumer. The Department agrees that quality is the EU's most potent weapon and the area in which it is most unique, both in terms of standards and the diversity of agriculture and foodstuffs on offer. How to get that message across in terms that will guarantee some additional return to producers for all the work they are investing in their products and all the other participants in the production chain is an important issue.
While the Green Paper raises many important questions, the preliminary proposals made thus far are unlikely to offer a full solution. Basic questions arise on how the consumer can distinguish between what different certification schemes offer and whether common rules are required for the accreditation of certification schemes, standardisation of symbols and systems. A question also arises as to whether one would end up with a great deal of bureaucracy and begin to lose some of the message behind the logo.
On some of the issues raised in the Green Paper, there is a case, albeit one that has not yet been fully proven, for considering a logo to denote European Union versus non-European Union origin if what we are talking about is the quality and environmental standards particular to the European Union. However, we would not want this to be secondary to the ongoing debates in which the Minister has pressed for the origin to be labelled on products. We are seeking to have imposed on other products a regime similar to that which applies to beef. While this debate is taking place in another forum, we do not want people to lose sight of it when considering the possibility of introducing an EU label.
Various Oireachtas committees have examined the issue of PDO and PGI designation. While this system has worked well for some EU products, primarily in southern member states where producers in a particular village have been producing a product in a particular manner for generations and are less diverse than Ireland, the current rules are somewhat restrictive. Broader rules could, however, mean proliferation of products and dilution of the logo. On the other hand, introducing new categories, for example, for "farmhouse products", could present opportunities for producers.
On quality assurance, Ireland conducted a review of quality assurance schemes in 2000. An expert group made recommendations on achieving greater coherence and clarity. The key recommendation was that all schemes, whether private or otherwise, should be accredited to the international EN45011 standard and generic national guidelines should be drawn up by a standards authority. The National Standards Authority of Ireland has worked with the Department on such a generic national guideline.
Bord Bia was slightly ahead of the posse on this issue and has developed and operates food quality certification schemes. As members will be aware, these quality schemes cover beef, pigmeat, eggs, horticultural produce, lamb and poultry. These are all national schemes and are accredited to EN45011 standard through the Irish National Accreditation Board. As the board is a member of European network on accreditation and signatory to the European network's multilateral agreements, Bord Bia schemes have recognition and currency worldwide.
Membership of national schemes is open to producers and processors throughout the country. The standards are drawn up in a certain technical fashion and all those who contribute to the standard or process have a role through the technical advisory committees, TACs. In addition, other private schemes are operated by retailers and multiples and tend to operate in all the outlets of the multiple or retailer in question. The Department is pleased to note that a number of multiples have endorsed the quality assurance schemes operated by Bord Bia as it is easier for a producer to deal with one standard rather than several standards.
The consultation is a first step in a process that may or may not lead to legislation. It provides an important opportunity to send a message and consider ways to more effectively support and promote the high standards of quality inherent in EU standards. Securing a good outcome to the process will be challenging.
