Holly Cairns (Cork South West, Social Democrats) | Oireachtas source

I will be speaking to my amendment, amendment No. 12, which is grouped with amendment No. 7. This discussion of the Bill is incredibly timely, with soaring food costs for ordinary households while, at the same time, many primary producers and smaller retailers are scrambling to get by. Amendment No. 12 is about ensuring that the new office is empowered to examine issues and publish information around the cost of production. The current wording in the Bill is too ambiguous and does not explicitly require full and transparent analysis of the true cost of producing food that we all consume and that is exported.

With this amendment, I am seeking to ensure the Bill goes as far as it can for farmers, fishers and primary producers. Their work is essential but too often they operate at a loss or barely get by while, at the same time, food processors, major retailers and wholesalers make massive profits. The Government has ruled out legislative measures to intervene in the market to prohibit below-cost procurement where producers get less than it cost them to produce the products. I recognise that this is a very complex area and there needs to be some degree of flexibility to enable negotiations and everyday commerce. However, it is disappointing that the Government is not willing to take the steps available to protect primary producers and consumers.

I am proposing an approach that provides greater regulation in this sector and a more robust focus on unfair trading practices than the Bill currently allows for. It is essential that this law goes as far as possible in permitting the new regulatory office to investigate all aspects of the supply chain.

It is simply wrong not to mention that it is unsustainable that farmers, fishers and small-scale producers end up receiving less than the cost of their produce from retailers and food processors. Meanwhile the supermarkets are milking it. At Leaders' Questions, I raised the fact that in 2020, Aldi made 71% more profit in Ireland than it did in the UK. We would not even be privy to that information if Brexit had not forced Aldi to separate its Irish and UK accounts. We have no idea what the other retailers are doing in terms of profiteering.

My amendment helps to address this malpractice by requiring the new office to publish annual reports on costs associated with the production of different foodstuffs to determine the cost of production. This would be significant in providing transparency and holding big players to account. This type of analysis would help join up all aspects of the food chain. Producers, consumers and policymakers could all see how much it costs for an inshore fisher to catch mackerel, how much fishers get for that fish and how much it is sold for in the shop. The same level of detail could be provided for sheep, cattle and tillage farmers. This sort of information could be transformative in helping the general public and Government to understand the real cost of food as well as the pressure producers are under.

During pre-legislative scrutiny, farming and sectoral groups repeatedly called for more effective measures to address below-cost procurement and greater transparency on our food supply chain. This amendment is a direct response to those concerns and I hope the Government will accept it. The Minister said previously that he did not want the Bill to provide a level of detail as it would be too prescriptive. This is exactly the level of direction that is required. This is what primary producers are seeking. This Bill is supposed to protect them from unfair trading practices so we should listen to them.

There is a larger point that has not yet been discussed properly in these debates. Our agrifood sector is supported by €1 billion of public money annually, including up to €500 million for the Common Agricultural Policy, CAP, over €218 million for agri-environment schemes and more than €100 million for the beef and sheep sectors. A substantial portion of this investment is designed to support food production directly. For this reason alone, there should be considerably more transparency. Where is the value for money? Does this investment actually help primary producers and consumers because under the current system, it looks like the State is subsidising the larger players - basically subsidising the supermarkets when it is at that level. It reduces the cost for the farmer to produce so the supermarket can buy the produce cheaper and then has no input into, control over or say about the costs faced by consumers at the checkout in the supermarket. Public money is given to farmers, fishers and primary producers, many of whom are just getting by. At the same time, this is not making produce any cheaper for families.

It is essential that the regulator has the capacity to examine this whole process. We need to understand how much it costs to produce a kilogram of meat, fish or vegetables, how much of that is public money, how much are producers getting, how much are consumers paying and, crucially, what the environmental cost is. All of this information is essential to support primary producers, help families get better value for money and provide accountability for how public money is spent.

My amendment is simply about guaranteeing that the new office provides us with information on the true cost of producing food. That is all. Surely this is a basic requirement of a body designed to oversee our food chain. It is clear that the Bill needs this improvement. There are several amendments grouped together that are aimed at achieving a similar goal. I implore the Minister to engage with us. He cannot claim the Bill will achieve this in its current form. The level of detail and capacity needs to be supported by legislation. This Bill needs to have a strong and unambiguous message.

Last week, when I highlighted the flaws in this Bill with the Tánaiste, he incorrectly said I did not have amendments. I clearly have but more significant is the implication that his Government would be willing to engage with amendments. I urge the Minister to accept this amendment.

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