Mr. Brian Rushe:

I will take the question. The Deputy mentioned the agrifood regulator and we welcome the appointment of Ms Niamh Lenehan. One of the big things for us is that we need that office to be fully resourced so Ms Lenehan will have everything she needs to be effective. It is a positive step but it is only the beginning. We will have to see how it works over the next few years. We are looking forward to working with her.

On the issue of below-cost selling, I am aware of the Minister's comments. As to what can be done, when we look at below-cost selling, we are really talking about protecting the farmer or the food producer. As sure as night follows day, when compression comes at retail price level, it eventually lands at the farmer’s gate. A retailer might say to us that it is selling carrots at 5 cent a bag and it is taking the cost, and that might be right on that day, but somewhere else, a margin is being squeezed. Every time we see below-cost selling in a retail store, we know it eventually comes at the farmer's expense.

The Minister is saying that this or that cannot be done. Maybe we need more transparency at that level in terms of retail purchasing and more transparency on where the margins are on certain food groups to make sure we can see where the true costs are. That would throw total light on what is happening.

There are two issues with below-cost selling. The first is how it affects farm gate prices, which it absolutely does, regardless of what retailers say. The second is the perceived value or, in fact, the devaluation that it creates for the customer. It creates this impression or this assumption that as food is cheap to buy, then it must be cheap to produce, which devalues our product. When we go looking for a price increase, as we continuously have to, we are facing an uphill battle. Not only are we battling with a retailer, but we are battling with a consumer who has the false impression that the product is cheap to produce.