Dáil Éireann Debate, Thursday - 19 April 2018
289. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine his views on the draft EU Directive COM(2018) 173; and if his Department has carried out an analysis of the proposal. [17275/18]
Amharc ar fhreagra290. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine his views on strengthening provisions at EU Council level in view of the fact that the draft EU Directive COM(2018) 173 applies to only SME suppliers; and his further views on whether a more encompassing approach to combatting unfair trading practices needs to be applicable to all groups in the food supply chain regardless of their size. [17276/18]
Amharc ar fhreagra291. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine his views on Article 4 with respect to the draft EU Directive COM(2018) 173 final that each member state shall designate a public authority to enforce the prohibitions laid down in Article 3 at national level which would have the power to issue fines for breaches of the new regulations; and his plans in this regard here in relation to an existing or new State body. [17277/18]
Amharc ar fhreagraI propose to take Questions Nos. 289 to 291, inclusive, together.
I welcome the publication of the proposal for a Directive on Unfair Trading Practices(UTPs) in business to business relationships in the food supply chain. The Commission proposal seeks to protect the weakest links in the supply chain, farmers and small and medium sized food companies. The ambition is not to cover all UTPs but to address unfair UTPs which have a clear negative impact on the food supply chain. These include establishing a minimum standard of protection across the EU, including the banning of late payments for perishable food products (maximum of 30 days), last minute order cancellations for perishable food, unilateral or retroactive changes to contracts and forcing the supplier to pay for wasted product. Other measures are only permitted if agreed in advance by both parties including, for example, the return of unsold food products to a supplier and so called ‘hello’ money.
The Commission proposal was first discussed at the Agriculture Council this week (16 April), with a positive reaction from most Member States. I welcomed the publication of the proposal, and outlined my preliminary views on the matter:
It is clear the issue of unfair trading practices is a crucial issue for the agri-food sector as a whole. The relative bargaining power of operators along the supply chain is a matter of concern for many farmers and SMEs. Indeed some of our industry representatives have indicated, it is an issue for larger companies and cooperatives as well.
Up to 20 Member States have specific unfair trading practice rules. Ireland is among those Member States. However, as a nation that exports more than 80% of its agri food output, Ireland favours a regulatory framework at EU level. We believe that some commonality in the framework would contribute to the more effective functioning of the single market.
On the other hand, many Member States have done very good work in this area in recent years. It seems clear that these Member States would prefer that any common minimum unfair trading practice standard introduced across the EU should complement existing national measures and not compete with them.
My officials are analysing the detail of the proposed directive from an agriculture and food perspective, in coordination with stakeholders and particularly with the Department of Business, Enterprise and Innovation, which has lead responsibility for the Grocery Goods Regulations introduced in 2016. These regulations aim to ensure that commercial dealings in the grocery sector are fair, sustainable and operate in the interests of jobs, consumers and sustainable safe food.
Following on from that consultation process, I look forward to engaging constructively with the Commission, the Parliament, the Presidency and the Council on this significant issue in the coming months.
