Ms Edel Clancy:

I will deal first with the horsemeat issue because it was common to a number of questions. As stated in our statement we conducted extensive tests on our own brand meat and all of those tests came back clear in all of our own-brand beef in Ireland and in the UK. In regard to the code, there is something here in terms of the role of the European Union and the example described is an EU-wide issue. As such it needs to be dealt with on a cross-Border basis.

In regard to Musgrave particularly and our own supply, we work closely with our suppliers and check factories. We walk those factories and check all of the documentation, we order everything and we do our own testing. In regard to beef, our supply chain and our traceability systems were validated in the past few weeks. Going forward, our commitment to Irish supply will continue. For fresh meat we will continue to source 100% Irish beef, lamb, chicken and pork. We have very strong relationships with those suppliers. We source 100% of our beef from Kepak which came through unscathed from the recent scandal. We work with Kepak on an ongoing basis. This leads to the question of the relationship with primary producers. It is important to make clear that in regard to fresh product we do not hold the relationship with primary producers, we hold the relationship and negotiate directly with Kepak. On the question of the price going back to farmers, the reality is that in regard to beef, particularly, 85% to 90% of the beef produced in Ireland is exported. Therefore, the price that goes back to the farmer is determined at an international level. Regardless of the number of promotions that we work through with Kepak on steaks or whatever it might be, over a 12 month period, that does not affect the price that a primary beef producer gets. In recent years, beef producers have had price increases in the range of 35%.

These prices are published every week in the Irish Farmers' Journal. Those prices are determined by other factors outside of what happens here in Ireland.

On the development of own brand, as I mentioned earlier, at present the average basket would have approximately 35% own brand. If one looks at how consumers are shopping, as Senator Mary Ann O'Brien correctly stated, consumers are shopping around and looking for value. They are shopping for promotions and they are buying own brand. Consumers' expectations are that own brand will increase. From an Irish supplier or producer point of view, there are additional opportunities for suppliers from own brand. For example, a good company in Donegal called Mulryan supplies us with all of the juices for our own-brand range. It started with us a number of years ago and has gone from strength to strength. It now supplies us with our orange juice, blueberry juice, etc., across the group. It now has opportunities to break into the Great Britain market through our own brand. As the Senator correctly states, there is a demand for quality own-brand. The horsemeat issue brings that up. It is a matter of quality own-brand. We see that continuing.