Simon Coveney (Cork South Central, Fine Gael)

I am glad of the opportunity to answer this question because farmers are outside Leinster House today protesting on this issue. Many farmers believe they are not getting a fair percentage of the margins made on food sales by retail outlets and big supermarket chains in particular. It is important to note, however, that my powers and influence in this area are limited. Prices in big outlets such as Tesco, Dunnes Stores, Musgraves and SuperValu are, by and large, determined by competitive realities. We are working to resolve this matter at European level. The European Commission is examining this issue to encourage more collective bargaining power for primary producers - that is, the farmers. The programme for Government contains a commitment to introduce a fair trade Bill, which would even the scales in negotiations between primary producers and retailers. I intend to ensure that that legislation is brought forward. It is not being drafted by me but by my colleague the Minister for Enterprise, Trade and Innovation, Deputy Richard Bruton.

This morning, I spent some time speaking about this issue with IFA representatives. The response of the Competition Authority to a complaint made against the IFA was, in my view, excessive and I am uncomfortable with what happened. A body such as the IFA, which represents so many people, should be treated with more respect than it received from the Competition Authority. There is an ongoing investigation, however, and we must await the results.

It is important to remember that the majority of food produced in Ireland is not sold through multiples or other retailers here, but is exported. While we obviously want to secure a fair price for farmers' produce, we must also ensure that food production is price-competitive, because the majority of food produced in Ireland is exported and sold in foreign markets. It is about getting the balance right between those two issues.

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