Oireachtas Joint and Select Committees

Tuesday, 27 September 2016

Joint Oireachtas Committee on Agriculture, Food and the Marine

Brexit: Discussion with Mushroom Industry

5:00 pm

Mr. Leslie Codd:

To discuss the PRSI situation, we analysed our 225 staff members to see how many were being paid at a point where the lower PRSI rate was applicable. It was only 10%. It may seem very beneficial, but realistically the industry needs assistance on the 10.75% employer's PRSI rate. Mr. Wilson has been using the term "free fall", which is very apt. To put things in perspective, there has been a reduction of probably 17% to 18% in price within the space of a number of weeks. Mushroom growers exist on a very low margin. I imagine growers are used to making a margin of between 5% and 8%. When there is a price reduction of that much, one does what one can, but there is only so much one can do. In fairness to Monaghan Mushrooms and Walsh Mushrooms, they have come in with some assistance, but they can only do so much too because they are also on tight margins. Whatever has been done is all that can be done by the industry. We all run tight ships and do not have waste. We are now at a point where we see very little hope without Government assistance.

I want to touch on another point in the submission, which is the renewable heat incentive. It has been mooted within Government over the past number of years that a renewable heat incentive scheme will start. It has certainly been expected for the past two years. A scheme was introduced in England a number of years ago as well as in Northern Ireland and it has proved very successful in the reduction of emissions and reliance on non-renewable energy sources. I urge the committee to expedite a scheme if it can or, at least, give us the parameters of what levels can be used to assist people to convert to renewable energy. I understand that Ireland will have to pay heavy fines in the next number of years for its inaction in this regard. It is important to do this and it would really help our industry if it were introduced as quickly as possible. I estimate that it could reduce our costs of production by between 2% and 3%. I will answer any other questions.