Oireachtas Joint and Select Committees

Tuesday, 23 April 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Groceries Sector: Discussion (Resumed) with FDII and IFA

3:55 pm

Mr. John Bryan:

I am talking about livestock trucks. We had four livestock trucks travelling on each sailing to Holyhead. That is not a problem at all. The question is only whether it is viable. If the boat is to take livestock, the rules are very different with approximately six times as much space having to be allocated for a livestock truck compared to a container. There is legislation on airflow, etc. I presume that is the reason for the issue. Unless the demand is for a substantial amount of trade, the boats will not do it. They will have to be certified by the Department of Agriculture, Food and the Marine to the effect that each sailing meets the space allocation and the trucks are chained down. There is a significant raft of legislation. I was involved in it. I was on a ferry when the animals were being transported and I could not believe the distances that were being demanded. It was for airflow to ensure that there is no pneumonia among the animals. There is no legislation preventing it, however.

There are several reasons for the Northern Ireland issue. As England and Northern Ireland are in one legislative jurisdiction, a great deal of quota flowed to Northern Ireland. There was a massive increase in production. However, they do not have drying plants as we have for powder which means that at certain times they have surplus milk. They would not have the capacity to dry it all, which means it suits them to put a certain amount in here. I do not know how they can have done it at the price we have seen on some occasions. I imagine what they were doing was unloading a surplus. To do it for the whole year suits them, but they could not supply 100% of it.

The Deputy's other suggestion would require some level of collusion by many people, which is definitely illegal under competition law, on which the Deputy and I disagree.

There are completely different interpretations of competition law in Ireland and France. As Ireland takes a purist view of competition, it is deemed illegal for six or seven people to sit down and decide that the price of beef or milk is wrong and that they will lean heavily in one direction. I am informed that it is illegal under Irish competition law for us to discuss the issue of price with retailers or processors. I am not saying whether I do or do not do this. In France the right of the FSNA and other bodies to negotiate is accepted. In the high level milk discussions that take took place in Europe recently the rights of inter-branch organisations and the right to negotiate prices and margins were debated. There is a grey area between European and Irish law. No more than in the case of much Irish law, we err on the extremities. We meet the Ulster Farmers' Union on an ongoing basis and have a very close working relationship with it. The types of farm and agreements in Europe are similar. Again, when we talk to it, all it wants to do is send more milk, beef and chickens down here. It puts the tricolour on them if they are being sent to the Republic of Ireland and the Union Jack if they are being sent to England. That is its philosophy and it works for it.