Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

I thank the representatives for attending today. I am disappointed with the approach taken. I expected a slightly different presentation when the witnesses are appearing before an agricultural committee. It is important to highlight taxation issues here. They may be better suited to the finance committee but we are all legislators and I am happy to touch on those issues. I had expected a more agricultural focus. Mr. Masterson's presentation was interesting but I had expected to hear more about the challenges and demands facing the agriculture sector to allow us reach the potential Ms Byrne has in her company and in growing the export potential, both in whiskey and other products.

Leaving aside the agricultural element, I am concerned that Mr. O'Brien played down the challenges we must face in tackling the drinking culture. In terms of the World Health Organization's categorisation of a harmful drinker, we can decide on the best description of a harmful drinker but the upshot of what he is suggesting is that this country does not have a drinking culture. No one in this House can afford to take that approach, and we must be fair and balanced in the way we approach such issues.

A number of issues impact upon this area. The Competition and Consumer Protection Bill is before the House. The ban on below cost sales of alcohol was lifted a number of years ago and we have seen its impact in terms of the number of sales of alcohol in off-licences, which was addressed earlier. The level of drinking that takes place at home is not a healthy development.

To an extent the pub is a regulated environment. Therefore, the move away from pubs due to the availability of large volumes of cheap alcohol in supermarkets is not a healthy thing for the country.

I have adopted a balanced approach to the matter and do not support the banning of sponsorship of sporting events by drinks companies. Last weekend we had a golf event that we could be very proud of which does not have a main sponsor. However, I do not believe the argument put forward that it would be easy to find sponsors from other areas. I disagree with the idea that one could take the likes of Punchestown and the Curragh racecourse and not allow them the option of availing of sponsorship by a drinks company because Cheltenham and Aintree could still be beamed, via telecommunications, into every house in Ireland with advertisements by drinks companies displayed everywhere. Therefore, I do not think a ban here would have the desired effect. We need a balanced approach and I am hopeful for one.

I am very excited about the potential of growth in the Irish whiskey industry, in particular, and its international demand. That demand needs to be international because of the kind of figures that have been talked and the growth in the number of distilleries around the country. However, if the demand is based on consumption here then such a development will cause its own problems.

The delegation is right that Irish whiskey is sexy again and we need to look at how best to support it. From that perspective, and getting back to the agricultural element, I ask Ms Byrne the following questions. What challenges will we face with an increased output of quality Irish whiskey? How can we maximise the return? What challenges does she envisage for the input side? What demands will be placed on the agricultural sector? What raw materials will distilleries need into the future? How many more Willie Mastersons will we need to provide that element and meet the challenges?

I am a Deputy for Kildare South and Boortmalt is based in Athy. There are plenty of malt and barley growers around. They do not all need to be located near the River Slaney and there are plenty of them around Athy as well. The sector is a vital part of the drinks sector. Many farmers who live near me grow malt and barley. My one criticism is that the link between Diageo and the farmer seems to have gone. The farmers deal with Boortmalt and Boortmalt deals with Diageo and never the twain shall meet. Something has been lost from that situation and farmers are frustrated as a result.

Obviously it costs more to grow malt and barley. Locally, a lot of farmers had their barley ruled out because of high protein levels last year and I presume a significant amount of barley had to be imported. The farmers who had invested in the extra costs to grow malt and barley ended up only having barley suitable for feed purposes. I am not sure how aware Diageo was of the impact that situation had on farmers and Mr. Masterson is probably aware of a similar situation in Wexford. There is a challenge in that sector. It is important that Diageo reconnects with the farmer through some form of communication.

I wish to mention another element and inputs regarding the growth of whiskey. Mr. Masterson touched on the huge loss caused by the demise of the sugar industry a number of years ago. I am aware that a new proposal for the sugar industry to return is being worked on behind the scene. One element is the production of bioethanol which would also give us an option to produce alcohol. That could be another important by-product from the sugar industry. I would like to hear the views of the delegation on the matter.

I shall finish by returning to the initial point made by the delegation that the industry cannot afford the existing taxes. As politicians we deal with different segments of society every day of the week who tell us they cannot afford the current range of taxes. However, the country needs its present tax take in order to survive, get us back on an even keel and stop running a deficit. Therefore, difficult choices must be made. In talks to reduce a tax one must see the positive to be gained on the other side. The presentation by the delegation focused very much on consumers in Ireland and the tax they pay. I thought the focus should have been on the export potential of the drinks industry and the knock-on impact it could have on the agricultural sector.