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)

If we want to live in utopia, put a steel wall around the country and say we will produce and consume our own, we will have a 90% surplus of agricultural produce in the country. That would be a crazy way to run this island. We need a situation where we have access to the European Union market. The Fianna Fáil party led this country into the Union in the 1970s and negotiated from the 1960s through the 1970s to change everything. Prior to joining the European Union in 1973, we exported 75% of all our produce to the United Kingdom. Since then we have quadrupled our exports to the UK but these now only form 24% of the total volume of our exports. This demonstrates the distance we have travelled, the production capacity we have achieved, the number of people involved in a productive capacity, the number of jobs created and the great opportunities in the industry. We need optimism and assurances from everybody involved in the agriculture and food sector that they will remain positive and recognise this achievement.

Let us look at our international performance. The Kerry Group is probably one of the leading food companies in the world on the global stage. Glanbia, Green Isle, Anglo Irish, Dawn and Bailey's are companies which export and operate throughout the world. We should be proud of them and recognise that they have played a huge role and have been flagship companies for Ireland.

Féile Bia was denigrated in the discussion. Féile Bia gives an important assurance to the consumer that the product on the table is quality assured and traceable to the producer. Bord Bia has a clear auditing system to ensure that we have that guarantee.

People referred to the importation of food into the country. We live in a global marketplace. We open markets across Europe and the world and are part of a World Trade Organisation situation and must, therefore, accept that a certain amount of products will come into our country. I did some research into the reason other food products are imported here, whether beef, chicken or whatever. They come because we have a good economy and people want a choice.

More particularly, they come because suppliers are able to get a guaranteed price on the product for a 12 month period and can do their planning and accounts, know their profits and conduct their business. We cannot get that on the market here. In our flexible market, when the price rises, the purchasers are charged a higher price but when the price goes down, the purchasers are charged the same price. The people here involved in production, supply and procurement will have to look forward and give this same 12 month guarantee on prices. This is the only way forward.

Working together as a nation we must accept our responsibilities and try to reduce competition. We can never eliminate competition because it is always good to have some. It would be a serious matter to be in a position where competition was eliminated. However, we must ensure that we work together to provide stability in the market by giving continuity of price over a 12 month period and taking the ups and downs and flexibilities of the market to ensure trade and business can compete.

I am delighted Deputy Timmins is present. He carried out a wonderful survey on www.ripoff.ie. His survey did not take account of processing costs or the difference between wholesale and retail prices. He took base price production and took no account of processing costs, staff costs, overheads or insurance. Who is supposed to be responsible for those margins or who should pay the staff?

Comments

No comments

Log in or join to post a public comment.