Michael Moynihan (Cork North West, Fianna Fail)

This Bill emanates from the report of the independent Estimates review committee to the Minister for Finance in November 2002, which recommended that action should be taken to amalgamate Bord Bia and Bord Glas. The committee indicated the separate existence of these two bodies was an unnecessary duplication of resources in promoting and marketing exports.

Bord Bia is responsible for food, drink and livestock exports, while Enterprise Ireland has responsibility for indigenous exports, generally, excluding food, drink and livestock. The committee proposed that savings be achieved in the short term by closer co-operation between the bodies and Bord Glas. In the long term, however, it recommended that the functions of these bodies be integrated under a single agency to achieve greater efficiencies in promoting Irish produce.

This Bill provides for such an amalgamation. Bord Bia, the Irish Food Board, was put on a statutory footing by an Act of the Oireachtas on 1 December 1994. It brought together the former CBF, the Irish Livestock and Meat Board as well as the food promotion activities of the Irish Trade Board, now part of Enterprise Ireland. It assumed responsibility for the export promotion of eligible horticulture from Bord Glas and the Irish Horticultural Development Board.

The role of Bord Bia is to act as a link between the Irish food and drink suppliers and existing and potential customers. Its objective is to develop export markets for Irish food and drinks companies to bring the taste of Irish foods to more tables worldwide. Bord Bia has an extensive and in-depth knowledge of the food and drinks industry, which it is happy to share. It can provide interested parties with details of export production, quality standards, health regulations and controls and new developments in the industry. Bord Bia can act as a bridge to put parties in touch with companies appropriate to their areas of interest.

Food is one of the most important indigenous industries in Ireland. Irish producers have excellent markets throughout the world based on the standards in place which need to be maintained and further expanded. Irish multinational food producers are sufficiently viable to meet those standards and operate commercially. However, there is some concern throughout the country over the cottage industry in food. Many people who travel to continental Europe report that the regulations that apply to the Irish cottage industries are more strictly adhered to than on any part of the continent. Over the past ten to 15 years there was certainly need for regulations to ensure we had quality products. We have excellent quality products. Whether it is Cork, Connemara or anywhere else, a cottage industry exists that is second to none and small food businesses have flourished in the production of their own niche markets.

Perhaps it is time the regulations that apply to these small indigenous cottage food industries were reviewed. In many parts of the continent, food stands may be seen in the village centres every morning and they do not appear to adhere to any regulations. If this situation were to be replicated in Ireland, traders would be swamped with regulations across the board. This matter should be looked at, as we discuss this Bill, to ensure maximum support and encouragement is given to the many cottage industries here, which are a great source of employment. In times of difficulty as regards farm incomes such industries provide added value at the farm gate. As people desert the land in droves and opt for alternative employment, perhaps Teagasc and the bodies that encourage the young to take up farming should also emphasise the opportunities in the cottage food industries as regards added value. I recommend that this should be examined closely.

Over the years and especially since the foundation of the co-operative movement, dairy and other co-ops became the primary producers of food in Ireland. When PLCs are taking over these co-ops, something that should be looked at is their amalgamation. In parts of the country where some of the smaller co-ops have flourished and kept their independence, they still provide and maintain healthy balance sheets. There are reports which recommend more co-op amalgamations into larger groups, particularly in the dairy processing industry. I am not convinced this is the right way forward. This should be examined more closely to ensure that the independence of smaller co-ops is maintained.

There are three small co-operative movements in my area, the Duhallow region of Cork, Newmarket, North Cork and Boherbue. Each of them is doing well with their independent outlook and they are marketing their produce successfully. There are more independent co-ops in south-west Cork that are doing well. Perhaps we should examine that issue closely before we amalgamate all co-operatives into larger public limited companies. With the post-Fischler and mid-term review proposals and the implementation of decoupling, now is the time to ensure that the quality of farm produce improves considerably. The money will be made in producing top-quality food. As much encouragement as possible should be given by the Department of Agriculture and Food and organisations such as Bord Bia to ensure that we have top-of-the-range food. Years ago, there was a massive initiative to encourage people to buy and eat Irish. Parts of the catering industry are using imports instead of our own native food. We should try to encourage people — and they should also empower themselves — to ensure that we buy Irish and support indigenous industries.

Food is one of the strongest and most important industries in this country. As a people, as individuals, and as Members of the Oireachtas, we must try to encourage as much Irish produce as possible to be eaten wherever possible. There is no substitute for the food that we produce, and though the regulations are strict on cottage industries, perhaps the Department or Minister might consider those issues. The Bill is intended to improve market intelligence for the industry; develop horticulture quality systems in line with customer demands and business management training programmes for the industry; improve its marketing in home and foreign markets, liaison and interaction with all sections of the industry, and co-operation with the producer, wholesaler, retailer and the industry's service sector; and promote and increase investment in the food and horticultural industries and consumption, not just in Ireland but across the world. We have much to be proud of in our food and drinks industry, and I welcome the Bill as a move towards ensuring that we are competitive in our industry.

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