Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Competition Law

Dáil Éireann Debate, Thursday - 27 October 2016

Thursday, 27 October 2016

Ceisteanna (24)

Jackie Cahill

Ceist:

24. Deputy Jackie Cahill asked the Minister for Agriculture, Food and the Marine if he will address the serious concerns in the beef industry following a takeover by a company (details supplied), in view of the fact the primary producers may now find themselves selling into a less competitive market; and if he will make a statement on the matter. [32210/16]

Amharc ar fhreagra

Freagraí scríofa

I am very much aware of the crucial importance of competition in the beef and lamb sectors. In this context, it is critically important to have a robust and transparent legal basis for the evaluation of proposals for mergers and acquisitions. This helps maintain the continuing viability of the beef farming industry in Ireland.

I note the outcome of the European Commission's recent decision on this particular case. The proposal has been scrutinised in accordance with the well-established procedures under competition law rules, and amongst the factors taken into account by the European Commission was the impact this merger would have upon competition in the beef and lamb sectors. My Department wrote to the Competition and Consumer Protection Authority in relation to the matter referred to by the Deputy some time ago and provided statistical industry data in response to a questionnaire which came from DG Competition.

In this particular case the analysis and decision was undertaken by the Commission as per EU competition law on the basis of the combined turnover of the parties involved.

The vulnerable position of farmers in the supply chain is widely recognised and it was for this reason that we legislated earlier this year for the establishment of Producer organisations in the beef sector. I have also proposed to make an amendment to our Rural Development Programme which would introduce support for these organisations to improve farmers' bargaining power in the beef supply chain. Recognition as a Producer Organisation will give farmers the right to bargain collectively with factories outside normal competition rules, strengthening their hand and allowing for a more predictable and stable supply rate, which will be of benefit to both producers and factories.

Through the Competition and Consumer Protection Commission, the State has an existing and well-established infrastructure for the oversight of competition issues and for dealing with allegations of anti-competitive practices or the abuse of a dominant market position. I would like to reiterate that if evidence is available of practices by this or any other entity which are contrary to competition rules, the possibility of the matter being taken up with the relevant Competition Authorities remains open.

Barr
Roinn