Éamon Ó Cuív (Galway West, Fianna Fail) | Oireachtas source

I welcome the delegates. It is beyond time that we had a discussion on this issue, which deserves serious attention in its own right. At the same time, however, we should acknowledge that it is part of a wider issue. What we are dealing with in the agricultural industry is a type of hourglass effect, with a large number of consumers, a very small number of retailers and processors, and a large number of producers. This is the case not only in Ireland but across Europe. In most countries the market is dominated by five multiples or thereabouts, which means there is an overweening power in the middle. In the case of the delegates, that power is the retailers, while in other sectors it is a combination of retailers and processors.

I am very strongly of the view that the key issue in farming is that farmers want it to be profitable in its own right. They want to have certainty that if they produce good-quality goods, they will get a fair return for them. Mr. Foley outlined the issues very clearly, including the sudden promotions, prevalence of below-cost selling and the absolutely crazy situation that pertained in 2013. I understand that Christmas 2014 was not very good for producers either, because the retailers manipulated the situation in a different way and left farmers with unsold products. Perhaps Mr. Foley will comment on that?

Mr. Foley seems to be saying that this issue should be tackled on two levels. At a national level, he supports the regulations in the groceries order but argues they should have gone a lot further. In line with the Oireachtas committee report recommendation, he calls for the appointment of a food ombudsman who would examine these matters and determine whether or not fair play is pertaining. Mr. Foley also wants a ban on below-cost selling at local level, which I would heartily support. What is going on at the moment in this regard amounts to exploitation. In addition, Mr. Foley would like to see consumer law tightened up, not only to protect consumers but also producers, many of which are small operators. Will he elaborate on the practical mechanisms that might be employed in this regard? There is a major challenge here and we will have no horticulture industry left if things continue as they are. We certainly will not have a traditional farmer-led horticulture industry.

There also is scope for action at the European level. During a visit to Brussels in September last year, it seemed clear to me that the European Commission is very engaged on the issues of price and the power of multiples. This concern applies across all products but is particularly acute for the vulnerable vegetable and fruit sector. Whether one is in the Mediterranean or in Ireland, it is a common problem. It was pointed out to us during our visit that it is the position of the Commission that a farmer is entitled to a fair return for his or her product. We should build our case around that very simple statement, which is set out in the Lisbon treaty. It seemed to us at the time that there are two elements to this, namely, information and regulation. I noted Mr. Foley's observation that voluntary codes do not work. It is a view with which I agree. As I said, what is required is a two-step process. First we get the information and, second, we bring in regulation to ensure there cannot be exploitation of a dominant position, which is basically what is happening at the moment.

On the question of information around produce, the delegates might be aware that we had a delegation from the French embassy before the committee some time ago. Those witnesses spoke about the gathering of information, the working of the observatory and so on. It would seem to be a relatively simple matter to appoint, either at national or European level, people who would function as an observatory, working out, for example, the amount of broccoli sold and the retail margin taken by the shop, transporter, farmer and so on. Those data should be taken over a season because I would guess they play at highs and lows. This would give us the facts and allow us to compare price paid with production cost. I am very confident that if consumers knew what was happening, they would be very much on the side of the producer.

I assume that if all the vegetable and fruit producers in Ireland were to refuse to sell, say, broccoli or cabbage, the retailers would simply import them? There is an issue here in respect of labelling. In the case of the National Dairy Council, for instance, we have seen how it is possible to be effective in ensuring the consumer knows what is happening. Is there any way of introducing country-of-origin labelling which would ensure that where a native product is being swapped for an imported product, that the consumer would be aware of it and be aware, through advertising, of the effect it is having on this very important sector of the farming industry?

I very much welcome Mr. Foley's contribution today. It is good to see people coming forward publicly to outline what the issues are. I understand why so many farmers have been reluctant to do so. We need to follow up on the extensive work the committee has already done on this issue to ensure there is fair play for the horticulture industry and that it not only survives but thrives.