Oireachtas Joint and Select Committees
Tuesday, 4 March 2014
Joint Oireachtas Committee on Agriculture, Food and the Marine
Bull Beef Sector: Discussion
3:00 pm
Willie Penrose (Longford-Westmeath, Labour) | Oireachtas source
I thank everyone for the comprehensive presentations. As someone who comes from the heart of the area where some of what is being spoken about is prevalent and relevant, I am acutely aware of the impact it is having. It is not today or yesterday that I used to talk about this type of issue. Mr. Spellman referred to feed lots. I remember railing against the major processors engaging in the types of thing outlined and getting farm payments.
They built up significant farm payments through this type of factory inspired approach, which is something I railed against at the time.
There appears to be a concerted practice of market manipulation involved and it is amazing this has escaped the supervisory tentacles of the various authorities involved. The Competition Authority should surely have been aware of it. One of the presentations suggested the EU Court of Auditors is very vigilant in terms of what we would consider minor errors, and that it comes down like a tonne of bricks on them. I agree with Deputy Colreavy that it is time some of these bodies started to take a detailed look at this. It has gone beyond time for this.
Everybody advocates a free market and Deputy Ó Cuív made a very good point about State monopolies. The market monopolies are worse, because they race to the end line and do not mind who they trample on to achieve a result. I agree with the suggestion it is time to appoint a well resourced regulator to deal with the meat processing industry once and for all, because there are two many tales about what is going on. They cannot all be old wives tales. These tales have not just come out now, they come from as far back as the 1970s. I remember the old monetary compensatory amounts, MCA, system and there were all sorts of stories about it at the time. Strangely, this now seems to be reproduced in a different format, but without that name being applied to it.
It is time for us to take a detailed look at the system and to put in place a system for all Irish food. This may be an ambitious plan, but it is time it was done. It is not good to allow the distortion of the market to continue beyond beef, facilitating the construction of barriers and impediments which are anti-competitive and contrary to EU policy, particularly in terms of the free movement of goods. That they can do this in the middle of the production season, when people cannot alter their behaviour over night, is serious cause for concern. I was interested to hear that the rules on the quality bonus scheme were rewritten in the middle of the game. This is tantamount to market manipulation also. I may have misinterpreted the detailed and excellent submissions, but some of the remarks made seem to point to some form of collusion between the larger multiples and the major processors. Do any of the witnesses feel this may be happening? Are the heavy hands of both intertwined behind their backs, unseen, unheard and unspoken, but delivering?
I have one other question on the issue of the factories. When talking about beef, we talk about four quarters, but there is now a fifth area and there is some money hanging around, for the hide, the tongue and various bits. Beef was probably never as profitable as it is now. Years ago, this area was a great excuse for the price of cattle not being as attractive as we all thought it should be. Is there any sign of any of that money coming back or is it being confiscated and put into the soup? Is it going one way, into the bottom lines for the factories? It is time we had an in-depth look at this situation. Many farmers are teetering on the brink, but factories have never been as well off. This is a clear contradiction that cannot be tolerated for much longer. I will support anything this committee can do to bring this issue to the fore. It is time there was a Government initiative in this regard. It is time to step onto the pitch and bring this issue to the fore at national and European level. Let us walk, rather than talk.
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