Ms Patricia Callan:

I will respond thematically as many issues were raised. On the price question and, as I said earlier, we are very proud supporters and purchasers of Irish grain. However, we are only 10% of the national grain output. Even within our sector, there is only a limited amount. As such, the 90% focus and problem is still going to be there. For example, we are sourcing almost 100% of malted barley in Ireland which is because there has been innovation in the sector. We have seen over a period of time that we have successfully displaced imported product. By looking at innovation, we can certainly go down that route.

Irish Distillers is experimenting with rye blends on more than 140 acres in Enniscorthy. It planted the rye in the autumn of 2016 with the intention of harvesting it in the late summer of 2017 for use in the distilling process. More opportunities will arise from that pilot if it is successful.

The Alcohol Beverage Federation of Ireland is a trade organisation. Under competition law, if I got involved in price fixing, I would find myself in jail. There is absolutely no role for us in price negotiations. Indeed, the brewers and distillers do not buy directly. They buy through the malting companies. This is a matter for them to deal with. Unfortunately, we cannot get involved in that.

I would like to go back to the issue of Irish whiskey as a protected product. Under a technical file on geographical indications that the Government has agreed with the EU, the drink must be distilled and matured in a very precise and technical way on the island of Ireland. That is great because it means that this industry, unlike other industries, will never be moved offshore. It has to happen here. As an organisation, we have a role in protecting that internationally. We pursue fraudulent products in other markets as an important part of our remit. Under the geographical indications file I have mentioned, it is not necessary to source raw materials from Ireland. There are two reasons for that. First, many of the raw materials are not available here and will never be available here. Second and more important, such a requirement would be in breach of the EU treaties. It would be viewed as protectionist under Articles 107, 108 and 110 of the Treaty on the Functioning of the European Union because it would hamper the freedom of movement of goods and would protect domestic producers, both of which are outlawed. That is why such a requirement cannot be in place.

We are absolutely committed to increasing our use of Irish producers. The industry has been keen to have this conversation in previous dialogues, including the Department's tillage forum, as part of the effort to extend the innovation agenda to a broader range of products. Approximately 60% of raw material inputs in this sector come from the island of Ireland. This is very high in comparison with other sectors, including some that are more lauded. I will come back to the committee with more detail in this regard. I emphasise that many other raw materials in addition to grain are used in the process of making whiskey and beer.

I would like to mention Bord Bia's Origin Green initiative in the context of the five-year to ten-year plan. We are increasingly calling on our members to be part of all the great work that Bord Bia is doing with marketplace initiatives and buyers. One of the criteria now being implemented is that producers have to be in Origin Green, a key part of which involves doing between 90% and 100% of sourcing at local level. I think that plan is actually in place. We are certainly working towards that.