Michael McNamara (Clare, Independent) | Oireachtas source

I move amendment No. 7:

In page 9, between lines 9 and 10, to insert the following: “(3) Without prejudice to the generality of subsections (1)and (2), the Minister may make regulation requiring that the regulator shall, in consultation with Teagasc - the Agriculture and Food Development Authority - collect such information as is required to ascertain the cost of production in the State of such agricultural or food products as the Minister deems necessary to ensure fairness and transparency in the food and agricultural food supply chain in the State.”.

This amendment is similar to the amendments with which it is grouped. It will enable this new regulator, which, unfortunately, I believe will be a regulator in name only, although I hope I am proven wrong, to collect such information as is required in consultation with Teagasc, which already does quite a lot of work in this regard, to ascertain the cost of production in the State of such agricultural or food products as the Minister deems necessary to ensure fairness and transparency in the food and agricultural food supply chain in the State. Merely ascertaining what the cost of production is by somebody who is in a regulatory position would be a very important step forward. We have various estimates of the cost of production but there is certainly no agreement about it.

I will give a very recent example of this. Last week, Lidl announced that it was cutting the cost of milk. The CEO of Lidl Ireland and Northern Ireland said:

Our team have been consistently looking for ways to increase efficiencies and reduce costs in our own operations to help absorb these additional costs as best as possible. That being said, there has recently been some reduction in the cost of milk production, and we’re pleased to be in a position to be the first retailer in Ireland to reflect this reduction in our milk prices in store.

This was followed by some sales gibberish. I use that disparaging term because I have spoken to a number of dairy farmers and there is simply no reduction in the cost of production in Ireland. To be clear, the dairy sector has been buoyant for the past number of years and these have been good times for dairy. I am not suggesting otherwise. What I am saying is that it is disingenuous to say that there has been a reduction in the cost of production in recent times because I am not aware of it. The cost of foodstuffs has continued to rise and the labour shortages dairy farmers encounter persist. These alone, with the cost of fuel, continue to drive up the cost of production in the dairy sector. Here we have a retailer saying that there has been a drop in the cost of production, farming bodies are saying, "No, there has not", and there is nobody to be an independent arbiter and say, "No, the cost of production has not fallen", or "Actually, the cost of production has fallen".

Perhaps the Minister would like to pronounce on whether the cost of production has fallen. If he would like to make that pronouncement, I would like to know what data he is basing it on and who is advising him. I would like him and future Ministers to have somebody reliable and a reliable office to point to with regard to the cost of production. Therefore, I hope he will either accept this amendment or that future amendments he may bring forward in the Seanad will reflect it.

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