Simon Coveney (Cork South Central, Fine Gael)
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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.

Mattie McGrath (Tipperary South, Independent)
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I thank the Minister for his reply. Like most Deputies, I am concerned by the outrageous act of the Competition Authority last week when it did a dawn raid on the Irish Farm Centre with 15 officers and a search warrant, just because of one person's complaint. It was totally high-handed and that is the problem.

There is too much regulation and I am glad the Minister will meet his colleague, the Minister for Enterprise, Trade and Innovation, Deputy Bruton. In 1996, producers were receiving 37% of the retail price, but this level reduced to 19% by 2011. I wish the Minister well in his portfolio and I hope he will tackle this issue.

Farmers are busy people and do not want to be out on the streets of Dublin, but that is where they are today in their many thousands. I met them earlier. They are disciplined, always well behaved and have served this country well. They do not need this kind of unfair treatment.

Simon Coveney (Cork South Central, Fine Gael)
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It is important to emphasise that we cannot fix prices.

Mattie McGrath (Tipperary South, Independent)
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I accept that.

Simon Coveney (Cork South Central, Fine Gael)
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We cannot fix margins either. We can examine ways for primary producers to negotiate collectively to get better prices for their products. We must balance the need for primary producers to get a fair price for their products that reflects the cost of production - the poultry and pig sectors are under particular pressure because of the price of grain and feed - with the need for Irish food to be produced in a way that is competitive with anywhere else in Europe. We are uniquely exposed to export markets and must sell the majority of our produce outside Ireland. The issue of margins relates to negotiating power. This is one matter that will be considered by the draft fair trade Bill.