Andrew Doyle (Wicklow, Fine Gael)
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Question 10: To ask the Minister for Agriculture, Fisheries and Food if he has held recent discussions with the Minister for Enterprise, Trade and Innovation with regard to the development of a code of conduct for the grocery sector; the progress that has been made in this regard; and if he will make a statement on the matter. [40613/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The renewed programme for Government contains a commitment to "implement a code of practice for doing business in the grocery goods sector to develop a fair trading relationship between retailers and their suppliers" and "to review progress of the code and, if necessary, to put in place a mandatory code".

The Government will give effect to this commitment by including a provision in the legislation, currently being prepared by the Minister for Enterprise, Trade and Innovation, Deputy Batt O'Keeffe, to merge the National Consumer Agency and the Competition Authority, which will allow for the introduction of a statutory code of conduct in the grocery goods sector. The Minister expects to publish this legislation early in 2011.

In the interim period, until the legislation is enacted, the opportunity is being taken to explore with stakeholders the possibilities of agreeing a voluntary code. To this end, the Minister appointed Mr. John Travers to facilitate discussions with stakeholders on drawing up of a voluntary code. Mr. Travers is currently engaging with the relevant stakeholders on the development of a voluntary code. It is expected that Mr. Travers will report back to the Minister on his efforts in the coming weeks. My Department and the Department for Enterprise, Trade and Innovation will continue to consult closely on this issue.

Andrew Doyle (Wicklow, Fine Gael)
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The Minister, Deputy Batt O'Keeffe, expects to produce legislation on a statutory code early in 2011. This is the beginning of November, so do we expect Mr. Travers to make a report on a voluntary code of practice by the end of the month? This process was started in August 2009 by the then Minister, Deputy Mary Coughlan. Some 15 months later, however, nothing has been achieved. We have no agreement or indicators from the players. A leaked document from Retail Intelligence showed that this is the treasure island for our major international multiple, whose profit margin in this country is greater than anywhere else. We have seen in today's newspapers that the price of beef is higher in Brazil than it is here. Yet the price to our producers is down, while the price for consumers is higher than everywhere else. Something is wrong, therefore, and the sooner we grasp this nettle the better.

Brendan Howlin (Wexford, Labour)
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The Deputy should put a question.

Andrew Doyle (Wicklow, Fine Gael)
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The joint committee's proposals on CAP reform identified the European dimension of the CAP as a key issue. It is worse here, however, because the margin of profit that being hoovered up by the multiples is unacceptable.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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With regard to the last part of Deputy Doyle's question, I welcome the fact that this issue has been highlighted in the all-party Oireachtas committee's paper on the Common Agricultural Policy post-2013. I have raised this issue in Europe from the point of view that even if we attain best practice in this country, it is important that similar practices operate in the other member states of the European Union. We export 85% of the food we produce. I am pleased the European Commission has agreed to establish a high-level group on the competitiveness of the agrifood sector. The Vice President of the Commission has asked me to participate in this working group and I am pleased to do so. I am also pleased the issue is being addressed at this level in the European Commission because it denotes the importance of the issue there.

I agree with Deputy Doyle. There is a real issue with retail margins on products and it is a matter of concern to the public. Increasingly, retail power is in the hands of a few large supermarket chains. In the meetings I have held with the multiples since I became the Minister for Agriculture, Fisheries and Food, I have highlighted the concerns of the consumer and the industry. In each meeting I have outlined to them that the individual farmer has invested heavily in farm facilities, as has the Government. In addition, the Government and the taxpayer have invested vast resources in putting in place a robust and vigorous system of traceability. Our food is produced to an exceptionally high standard and this has come through investment by individual producers, the Government and processors. All those involved require an adequate return for the significant investments they have made to provide a system that produces top-quality food.

Seán Sherlock (Cork East, Labour)
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I fail to see how our membership of the European Union has a bearing on this question. Will the Minister provide some direction as to when a statutory code of conduct will be put in place? When will this happen? We seek a specific time and date. Will the Minister not acknowledge there is a certain irony in the fact that the Minister of State sitting beside him, Deputy Cuffe, has referred to Terra Madre and the Slow Food movement, which comprises small organic producers who seek to find an export market? Meanwhile, in this country, the Government is capitulating to the Tescos and Asdas of this world which seek to gain a foothold here? Will the Minister confirm that he will do everything in his power to ensure that the retail planning guidelines will not be moved or shifted in any way to facilitate the "Tescoification" of the Irish grocery sector and to ensure that we can protect the primary producers to whom the Minister of State, Deputy Cuffe, referred such that we retain a good mix and not do not sell ourselves out to the large multiples?

Andrew Doyle (Wicklow, Fine Gael)
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Let us not forget the small retailers either.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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We are not capitulating to any of the multiples.

Seán Sherlock (Cork East, Labour)
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With all due respect, a Leas-Cheann Comhairle-----

Brendan Howlin (Wexford, Labour)
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Allow the Minister to reply to the question.

Seán Sherlock (Cork East, Labour)
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The Government should put its money where its mouth is.

Brendan Howlin (Wexford, Labour)
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Please allow the Minister to reply.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I am unsure whether Asda has a presence in our jurisdiction.

Seán Sherlock (Cork East, Labour)
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The Minister is well aware that it is knocking on the door. If he is not aware of this, he should be.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I am unsure of this is because the large multiples do not confide in me. Deputy Sherlock queried my reference to the European Union. Deputy Doyle adverted to the fact that this issue is referred to in the document on CAP reform to which Deputy has contributed. This is important from a European point of view as well because we must seek the best system to provide for fair practices and equity in the food chain and in every market in which we sell our product. That is important for our sector as well.

In my earlier reply I remarked that the Minister for Enterprise, Trade and Innovation, Deputy Batt O'Keeffe, intends to introduce legislation to merge the National Consumer Agency and the Competition Authority. This will allow for a statutory code of conduct in the grocery goods sector. The Minister, Deputy O'Keeffe, expects to publish the legislation early in 2011. That is as specific as I can be with regard to the legislative programme of another Department.

Brendan Howlin (Wexford, Labour)
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A final supplementary question from Deputy Doyle

Andrew Doyle (Wicklow, Fine Gael)
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This means only the merging of the National Consumer Agency and the Competition Authority will allow for the introduction of a statutory code. To finish on a note of co-operation, we published a food (fair trade and information) Bill in August 2009, the day before the Minister at the time, Deputy Coughlan, announced a consultation process. I will gladly hand the Bill over to the Minister for him to take on the matter. He may rewrite it as Government policy if he so wishes. It is there for the Minister.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I thank Deputy Doyle. A vast amount of work has been undertaken in the Department of Enterprise, Trade and Innovation on this issue. The Minister, Deputy O'Keeffe, has outlined that he intends to bring forward the appropriate legislative measures early in 2011.

Andrew Doyle (Wicklow, Fine Gael)
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Does that apply to both organisations?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I referred to this in an earlier reply.

Andrew Doyle (Wicklow, Fine Gael)
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Is this concerning the merger?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The proposed merger will allow for the introduction of a statutory code of conduct in the grocery goods sector. The Minister, Deputy O'Keeffe, expects to publish this legislation early in 2011.

Andrew Doyle (Wicklow, Fine Gael)
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It is the Minister referring to a statutory code?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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It will allow for a statutory code.