Oireachtas Joint and Select Committees

Tuesday, 26 March 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Groceries Sector: Discussion with Musgrave Group and Tesco

4:25 pm

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I wish to ask a question. The point was made that the witnesses have no problem with written contracts, as they form an integral part of the business, and that they favour the codes of practice in principle but would prefer if they were voluntary. There is some acceptance of the need to have a Europe-wide code in place. What is the view of witnesses on the introduction of a mandatory, overarching code of practice at European level that could be applied according to the interpretation of individual member states? It could include a provision whereby the terms and conditions of contracts with individual suppliers would be held and published. I refer to promotions in particular, not so much for bigger suppliers but for smaller, secondary processors and primary producers of, for example, fruit and vegetables.

I accept Mr. Allen’s point about climate factors coming into play in terms of the availability of products that could make a contract difficult to pin down. Would the witnesses consider putting provisions in place in an opening year contract to allow for variations to provide clarity for all concerned at the end of the year? We have heard much in the committee about stability and certainty in the context of the development of Food Harvest 2020 and the development of sustainable businesses. One of the points we hear regularly from suppliers is that there is much uncertainty. Deputy Pringle referred to people wondering when they will be paid and if the terms of the supply contracts will vary, and who carries the impact of a reduced price during a market promotion. They are the salient points.

What we believe consumers want more than anything is to know that the food they buy is what is specified on the label, and if it is said to be from a local supplier, that is the case. Reference was made to the issues by the witnesses. One can go to any town in this country and see Fairtrade tea and coffee. We would like to be able to reassure people that the food produced by the primary producer and processed by an Irish processor has a Fairtrade label attached to it covering all of the people involved in the food chain. It is a European problem but it is a problem in this country as well.

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