Dáil debates

Friday, 5 March 2004

An Bord Bia (Amendment) Bill 2003 [Seanad]: Second Stage (Resumed).

 

1:00 pm

Photo of Noel TreacyNoel Treacy (Galway East, Fianna Fail)

Is onóir mhór dom an seans a bheith agam freastal ar an díospóireacht seo chun freagra a thabhairt ar son an Rialtais, na Roinne agus an Aire Talmhaíochta, Bia agus Foraoiseachta. Tá muid ag plé an Bhille um an mBord Bia (Leasú) 2003. Tá muid ag aontú An Bord Glas agus An Bord Bia chun eagras nua cothrom a chruthú le freastal ar sheirbhísí bia agus thalmhaíocht na tíre.

I thank Deputies, particularly those whose contributions were positive. The Bill is well balanced to ensure the continued development of the Irish food and horticulture sectors. It ensures that future promotional actions at home and abroad will be fully synchronised to provide the best service for the producers, consumers and taxpayers of this country. Combining the expertise of Bord Glas and Bord Bia will make them even more effective in facing new challenges. In the words of the Irish proverb, ní neart go cur le chéile. Both organisations have performed exceptionally well, owing in no small measure to the calibre of the staff involved, and the respective staffs will also benefit from broader possibilities under the merger. I will now deal with the issues raised by the various Deputies.

Several Deputies expressed concerns that the identity of the horticulture sector would be submerged in the new body. The legislation as drafted will ensure that horticultural development will not be diluted. The two organisations have similar marketing and promotional remits, and the functions of Bord Glas regarding horticultural production are carried over directly into the new organisation. By providing for horticultural representation on the main board, and by the establishment of a statutory subsidiary board for horticulture, we are clearly guaranteeing full parity of esteem within the new strengthened organisation. It should also be acknowledged by the House that, over the years since the formation of Bord Bia, it has had responsibility for exports of all horticultural activity, meaning that there has been a dovetailing and duplicating of operations, which are now being synchronised.

Many Deputies referred to the question of healthy living and the role of Bord Glas in promoting that concept. Both agencies, Bord Bia and Bord Glas, have comprehensive programmes in place to promote the virtues of good nutrition and healthy eating habits. There has been much debate recently about the rise in the level of obesity in the western world. Figures point to a marked increase in the prevalence of obesity among Irish people. This is strongly influenced by a number of lifestyle changes, not least of which is the lack of daily physical activity. Perhaps Members of the House are also victims of this. While people are not necessarily eating more, they might not be eating a balanced diet and are not burning off energy. This leads to a change in body energy stores and weight gain. My colleague, the Minister for Health and Children, Deputy Martin, will shortly publish a strategy on this complex and important issue.

With regard to further amalgamation in food promotion, Deputies will recall that the expert group on the food industry, whose work led to the establishment of Bord Bia with a remit across the dairy, meat, consumer and speciality foods sectors, recommended a single food promotion agency. I am on record as favouring maximum coherence in the activities of State agencies in promoting food products, particularly overseas. Formal co-operation agreements are in place between Bord Bia and BIM and also between Bord Bia and Enterprise Ireland. The Bord Bia-Enterprise Ireland inter-agency agreement covers co-operation on the full range of activities of both of agencies and is particularly useful for Ireland on the US market.

Deputy Ferris mentioned support for the organic sector. In November 2000, an organic development committee was established to recommend a coherent strategy to achieve expansion in the production, processing and marketing of Irish organic produce and to secure an increased share of both the growing national and export markets. The committee presented its report in April 2002 and I have established a national steering group to oversee the implementation of its recommendations. A key aspect of our approach is to promote the acceptance of organic farming as part of mainstream agriculture. It is not in anyone's interests to play one off against the other. Much of the strength of the organic sector derives from the high principles and philosophy of its practitioners, with the result that consumers have a high degree of confidence in their produce. That reputation for integrity must be defended at all costs.

However, the organic sector will grow substantially only when the most go-ahead and innovative farmers are prepared to consider it as a commercial opportunity, worth the effort in meeting the exacting standards demanded. I have involved a range of stakeholders in policy development. Organic farmers and processors are represented, as are mainstream farming organisations, the food processing and retail sectors, consumer representatives and the Food Safety Authority of Ireland. The organic market development group, which has overall responsibility for developing a national marketing strategy for organic food, is chaired by Bord Bia.

Deputies have referred to the emergence of farmers' markets. Bord Bia's useful web-based guide identifies the benefits of these markets to producers, consumers and local economies, lists their locations and trading days, offers clear advice on what makes for a successful market and outlines the benefits and expansion opportunities in farmers' markets. I support these initiatives. With regard to making specific reference to the exclusion of genetically modified crops from the scope of this Bill, to prevent the promotion of GM foods, this legislation is not the appropriate vehicle for making general policy on this matter.

Deputy Timmins asked about the need for subsidiary companies. This is an enabling provision to facilitate legal compliance with the requirements of certain food quality assurance schemes. Separate certification and inspection bodies to ensure third party verification of standards are required as a prerequisite to the achievement of the highest standard, EN 45011.

Some Deputies suggested including specific gender requirements in terms of numbers on the subsidiary board for horticulture. The Bill's formulation on gender balance is appropriate. I hope to see a proactive approach by the nominating bodies to gender balance issues. The problem for the Government is that nominating bodies do not seem to consider the gender balance. I am, however, reluctant to make this legislation more restrictive and prescriptive than similar legislation in other areas.

Deputy Timmins asked about the number of responses the Department received from the 34 organisations, including institutions, representative of the horticulture sector which were asked to submit their views. There were 20 responses from the different organisations and their areas of concern have been addressed in this Bill. Deputy Crawford asked about the enabling provisions to amend the system by which the export levy is collected. Deputy Ned O'Keeffe also referred to this. This Bill simply provides that alternative means of payment may be put in place without the need for further primary legislation. The current system of payment, which is the only means of payment and which has some merit, is by means of stamps purchased in advance. Any regulations made under this provision would be laid before both Houses of the Oireachtas.

Deputy Sargent spoke about north County Dublin as a major horticulture producing area. I accept that. It has huge advantages, such as deep and warm soil, good climate, seasonal rainfall and a massive and growing consumer market in the capital. Long may that continue. In counties Louth, Meath, Kildare, Carlow, Kilkenny, Wexford, Waterford, Cork and Tipperary the soil and climatic conditions and the topography lend themselves to the development of horticultural and tillage production, as distinct from other parts of the country. We must compare like with like and bear in mind marketing opportunities, low cost access to markets and consumer demand. We must be realistic.

There has been a major change in the demographics and consumer habits in this country. The small corner shops and general stores have been replaced by massive multiple retailers and some independent medium to large stores. The small corner shop is largely confined to larger towns and motor fuel stations. That is a major change which leads to changes in production. We must take that into account.

Deputy James Breen referred to exports. We must realise the importance of agriculture, the food and drinks industries and horticulture to this country. Contributors to this debate have said they are in decline, but I do not accept that. They were never better in terms of volume of production, efficiency and cash value. There are more employment opportunities and greater opportunities for people to secure a financial return for their skills and abilities than ever before. The value of food, drink and horticulture exports is €7 billion per annum and that is growing. We decided it was better to proceed, on the basis of the track record of the two boards and in view of the opportunities in the global market, with a strengthened organisation.

Deputy Ned O'Keeffe made a wide-ranging contribution. He showed us a number of product samples and spoke about the country of origin. We established a major group during the past two years to consider this issue. The group could not get agreement between the farming organisations, the processors and the marketing organisations on making a clear recommendation regarding country of origin. Until an agreement can be secured, the advice available to us is that it may be detrimental to Irish marketing if we insist on that position. We have established a sub-group of the main group to try to draft a conclusive recommendation so we can hang a single flag for Ireland on all products leaving this country for sale on global markets.

I agree with Deputy O'Keeffe's remarks regarding Kerrygold. Kerrygold is a major brand name for Ireland. It is a brand product and the green label gives it the Irish flavour without the distinctive label of Ireland as the country of origin.

Deputy O'Keeffe referred to the situation pertaining to the Irish Dairy Board. In the past it was Bord Bainne but, under State aid rules when we joined the European Union in 1973, we were obliged to change it and it became a non-State aided private company operating in a commercial global marketplace within European Union rules. It has been a major success since.

The Deputy also referred to the own-label situation. This is based on providing transparency and an assurance for the consumer from the multiples that the product being sold is from a clearly identified location. It is important and has worked well and it is to be hoped that we can capitalise on it and develop it further in the future.

Deputy Kehoe said agriculture was in decline. I cannot understand why Members of Parliament or the farming organisations say agriculture is in decline. All over the world the numbers involved in agriculture are fewer. This situation is not unique to Ireland. In the United States, New Zealand, Australia, the United Kingdom, Europe, etc. the same situation prevails. In a global economy with newer sectors and streams of opportunity, the situation is bound to change. Mechanisation, technology and other advances all have a major influence. People have fewer working hours and shorter working days and weeks——

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