Dáil debates

Wednesday, 16 April 2014

Competition and Consumer Protection Bill 2014: Second Stage (Resumed)

 

4:35 pm

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael) | Oireachtas source

I compliment the Minister for bringing forward this important legislation. Following on from the last speaker, I do not know where media commentators would place me on the spectrum, given that I am totally in favour of everything he said. I am not a Fine Gael farmer but I do advocate on behalf of the farming community who make up a large part of the economy in my constituency. I make no apologies for that.

Both the media and farming organisations have commented favourably on the Bill. They have laid down a challenge to the Minister, Deputy Bruton, to follow through on the legislation. I know the Minister's background and he is committed to ensuring that there is fairness and equity for primary producers. That has been well enunciated both in this House and elsewhere.

I know, as the Acting Chairman does, that poultry producers have suffered at the hands of such behaviour for a number of years. The poultry industry used to be a massive employer in my constituency. We had two processors outside Newcastle West which employed hundreds of people. At the time there was little or no protection in terms of labelling, consumer information or ensuring that the practices identified in this Bill were dealt with. Both processors went out of business within 12 months of each other. Luckily the producers are still there but they, no more than beef or milk producers, have major input costs, including gas, water and cleaning out poultry sheds. Yet the amount they are getting for their product has remained static.

Beef farmers are also concerned about their input costs and what they are getting for their product. They are producing an exceptionally high-end, quality product that is fully traceable. It is safe, the best in its class and beats everyone around the world, yet beef farmers feel that the price being paid for the product they are sending to factories is questionable. I encourage both the Minister, Deputy Bruton, and his colleague, the Minister for Agriculture, Food and the Marine, Deputy Coveney, to sit down with stakeholders in the beef industry to examine this as a matter of urgency. This is a major issue for the rural economy in my constituency and others around the country. The issue arises from falling prices versus rising input costs that producers are now expected to bear, in addition to the degree to which the product must be finished.

I wish to declare a vested interest in one aspect of consumer protection that is not included in the Bill, which concerns rural pubs. One can currently buy a slab of beer and bottles of vodka in a supermarket as loss leaders at a knock-down price that is cheaper than water. We know there are health implications for young people and for society at large. However, there are also implications for publicans who really should be included in the terms of the Bill. I have a vested interest in this because I have family members who are publicans.

It is frightening to see the number of pubs that have been lost across the country in recent years. If something does not happen soon we will not have to worry about the Scottish case that is being, or might be, taken in the European Court because there will be no pubs left at the rate they are disappearing. That is no exaggeration. Something will have to happen to stop this haemorrhage of people from rural pubs to a situation where they are drinking in an uncontrolled environment at home. We know about the societal damage and the health implications, so such measures are badly needed.

Getting back to the thrust of the Bill, any day when there is one State agency less than before is a good day. The Minister, Deputy Bruton, is merging the National Consumer Agency and the Competition Authority into the new competition and consumer protection commission. When we came into Government we gave a commitment to the de-quangoisation of Ireland. Initially, a lot was done to reduce quangos but a lot more needs to be done. Some Government Departments are effective in de-quangoising but others need to do a lot more. Every effort needs to be done to achieve that.

The main thrust of the Bill examines dominance. The Irish grocery sector is now dominated by three or four key players. Farming representatives and others have asked why those sectors are not required to publish annual accounts detailing the profits they make in Ireland. Why are they afraid to publish detailed information that would tell consumers and the authorities about the amount of profits involved? I implore the Minister to examine ways by which that can be done so that the playing field can be levelled both for Irish and non-Irish producers.

From the consumer's point of view and for the parents of young children feeding a family, it is essential to get value for money. No one disputes that. I go back to one of the central points I made at the start. The consumer deserves to know what it is he or she is buying and where it was produced. At the moment, that is not the case. Labelling continues to be an issue whether in relation to chicken fillets or milk.

On the issue of supermarket practices, I note that I worked for Proctor & Gamble, a company referred to by previous speakers. The company had huge difficulties in relation to shelf space in supermarkets. If the likes of Proctor & Gamble have difficulty securing shelf space, what hope would I have if I were a cauliflower producer from Balbriggan? If those practices can be addressed to facilitate a level playing field for producers, it must be a good thing.

Farming organisations, producers and commentators have welcomed the Bill. They have all thrown down a marker however. They are waiting to see what happens. The implications of the Bill are important. We cannot allow certain practices to continue ad infinitum. While the consumer will be in a better position when the Bill is enacted, I encourage the Minister and his colleague, the Minister for Agriculture, Food and the Marine, to look at the beef sector.

I also ask the Minister in his role as a member of the Cabinet to address the demise of the rural pub. The Bill will address in some ways the demise of the rural shop. I concur with the remarks of Deputy Willie Penrose in that regard. If we do not grasp the nettle in terms of the sale of alcohol, we will not have a rural pub infrastructure any more than we will have a rural shop infrastructure. I welcome the Bill and look forward to its implementation.

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