Mr. Paul Kelly:

I will speak very briefly on some of Deputy Byrne's comments and those of Deputy Mitchell O'Connor. The complexity of the pricing system needs to be considered in the round when some of the fiscal measures are under consideration.

Fresh produce, by its nature, incurs an additional cost because it is much more difficult to handle and there is a higher rate of wastage. Seasonality must also be considered. One can find virtually any vegetable or fruit in a supermarket for 12 months of the year. These fruits and vegetables, however, do not exist seasonally in Ireland for 12 months of the year. Therefore, there is a cost associated with their production off-season under glass in Ireland or with importing them from other countries.

Fresh protein, including that in fish, meat and chicken, tends to be more expensive because of the cost inputs. This is evident when one considers the differences between the various proteins. Chicken tends to be cheaper than some red meat products, for example, because the conversion efficiency of the feed inputs is greater. In some respects, therefore, it costs less to use. Such products are increasing in price significantly because of higher feed costs, which are driven, in turn, by factors such as the drought in the mid-western United States this year. Unfortunately, our having a globalised food chain has implications for the consumer in Ireland, including Dublin.

Rather than considering fiscal measures such as taxation and subsidies - our position on this is clear as we have talked about it before - there is a need to consider the margins of end organisations such as fruit and vegetable retailers. There is some flexibility in this regard because there has recently been more promotion of fruit and vegetables. This suggests there is flexibility regarding the margins that are being garnered at end of the food supply chain.