Oireachtas Joint and Select Committees

Tuesday, 9 October 2012

Joint Oireachtas Committee on Agriculture, Food and the Marine

Review of Food Harvest 2020 Strategy: Discussion

4:20 pm

Mr. Shane Dempsey:

When we say complexity, we get accused of obfuscation. If one takes the example of a 10% tax, due to the market, the conditions in the market and retailer buying power, the economists believe one may get a 7% increase in price to the consumer. That may or may not be passed on to the consumer by the retailer; they will set the price. The products in question may be offered in deals, so the consumer feels no different. If it is passed through at a full 10%, one may get substitution effects where certain people pick different products or replace or downgrade on brands for lower quality products. In terms of complexity, if the price is too high, one may drive black market and cross-Border shopping. That leads to economic damage and job losses. Job losses and long-term unemployment are also a predictor for obesity and other non-communicable diseases. Overarching all of that, 60% of people do not drink soft drinks.

There is huge complexity. We need to bring everybody into the room at the outset to create a whole of society response. That is not view asserted by the industry but by the WHO, the CMO himself and other individuals.

In regard to fair trade legislation and a briefing, we would be happy to do that and to talk to any groups.