Trevor Sargent (Dublin North, Green Party)

Members of the House are aware of the need for farmers and growers to get a fair price for their produce. Hence, we are making progress in government with regard to a code of practice even though we would all like it to be faster. In due course, as the programme for Government stipulates, it will be a statutory code. However we all acknowledge this is no panacea and other routes to market must be developed. Supermarkets are not charities and will not simply forgo profit if they can get away with it, regardless of the long-term consequences of the shortsighted gameplan they have embarked upon. We need to avoid them becoming cartels or the temptation to so become. The second issue concerning farmers relates to the cost base of machinery, inputs and wages. The social partners, including IBEC and the IFA, are working on these issues.

I refer to the role of the Government in ensuring the spirit and letter of prompt payment legislation is upheld. This applies to businesses the length and breadth of the country. The Prompt Payment of Accounts Act is limited in its scope but the lack of prompt payment is hurting and killing struggling businesses. I refer in particular to the horticulture sector, which I know relatively well. I know one company that employs 24 or 25 people and needs working capital. The farmer in question approached a customer owing €19,000 and found that the company had closed down and has been set up again as a new company. The sum of €19,000 has not been paid. The farmer went to the bank needing working capital for the coming season and is told that the downturn means the assets of the farm are not worth as much and must face the prospect of putting the family home up as security. This is a difficult request to deal with and the spouse and the farmer must talk that over. If they do not do it, they risk the loss of jobs and the loss of fresh produce we all need for our health and our economic well-being. They must also consider the loss of the family home.

The House and the Government need to face up to the need to prevent the sharp practice of companies that feel they can avoid paying bills by using loopholes to open up as a new company. In government and in the House we need to give farmers and companies generally the leverage through which they can get interest on payments forgone on outstanding bills, as provided for under the Prompt Payment of Accounts Act for certain sectors. We must broaden that application.

Growers and farmers are not like short-term business models. They must think in two-year or 15-month cycles and they need working capital. They are the bedrock of our economic recovery and if they cannot get working capital and if they are not around we will not have an economic recovery. We need to take special note of the business model that requires the lead-in period for working capital to be provided. There has already been a fall-off in numbers of growers and farmers, particularly in the area of horticulture, where we are importing so much into this country. It is in all of our interests to ensure prompt payment of bills is enforced and that legislation is in place so that we can introduce measures to ensure farmers do not go out of business as a result.

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