Dáil debates

Wednesday, 25 November 2015

Ceisteanna - Questions - Priority Questions

Grocery Industry Competition

10:00 am

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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4. To ask the Minister for Agriculture, Food and the Marine the steps he has taken to ensure that horticulture farmers receive an equitable price for their produce during Christmas 2015 and that there will be no repeat of the events of Christmas 2013; and if he will make a statement on the matter. [41414/15]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The Minister might remember the debacle at Christmas time two years ago in respect of the virtual giving away of vegetables and the destruction it caused to our horticulture industry. I hope the Minister will tell us today that the Government is taking firm action to ensure there will not be a repeat this year of that type of behaviour by the supermarkets and a misuse of their excessive control of the market in a manner which operates against the interests of the agriculture and horticulture industries and the people.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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The legislative power to tackle the matters mentioned are under the auspices of the Department of Jobs, Enterprise and Innovation, together with the Competition and Consumer Protection Commission. The commission, which was established on 31 October 2014, is the statutory body responsible for enforcing consumer protection and competition law.

During 2014, the Department of Jobs, Enterprise and Innovation introduced the Competition and Consumer Protection Act 2014. The Act provides for the making of provisions for regulating certain practices in the grocery goods sector. I understand the Department of Jobs, Enterprise and Innovation is finalising the implementation of grocery regulations under this legislation. This, I hope, will guide the supermarkets in how they deal with producers in a fair and reasonable manner.

The price levels struck by growers with retail outlets are entirely a commercial matter. While it is not my role to set supermarket prices for agricultural products or to be involved in price negotiations between growers and retailers, like the Deputy, I very much encourage greater co-operation and discussion between all parties to ensure the viability of the largest number of Irish growers possible.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Has the Minister for Jobs, Enterprise and Innovation consulted the Minister of State on the regulations he is drawing up? Has he given the Minister of State assurances that he will do more than guide the supermarkets on how to deal with producers in a fair and reasonable manner? Does the Minister of State not think we need a little more than guidance to ensure the supermarkets behave in such a manner? Does the Minister of State intend to set up a horticultural forum analogous to the one set up by his colleague, the Minister, where not only would the producers and An Bord Bia be involved but the supermarkets would be involved too? Everyone should be brought around the table and a few heads banged together.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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I have ongoing discussions with all sections of the horticulture industry and am acutely aware of the difficulties encountered in producing and selling product. I am also acutely aware of the potential for import substitution. I continually meet them and discuss the issues with them. I am open to any dialogue that will improve the sector. It does not need a special forum because the sections have total access to me at all times.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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What about the supermarkets?

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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I have had discussions with the supermarkets but I am precluded by law from dictating to them. I cannot interfere with pricing. We have to very careful about that because it is written in law. I have encouraged them and spoken to them but I have to be very careful about it.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Deputy might remember it was his Government that got rid of below-cost selling.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Article 45.2.iii of the Constitution provides, "That, especially, the operation of free competition shall not be allowed so to develop as to result in the concentration of the ownership or control of essential commodities in a few individuals to the common detriment." Whatever about the law, the Minister of State is constitutionally bound to ensure the common good prevails in this case. Surely the common good in this case would ensure the price of vegetables would be pitched in order that we could continue to have a horticulture industry in this country that can provide that essential commodity to our people. This would ensure the control of a few individuals, in this case, a small number of supermarkets, is not exercised in such a way that it effectively controls essential commodities.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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I want at all times to ensure the producer is paid a fair price. I have already stated that I cannot interfere.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The Minister of State can. It says so in Article 45.2.iii of the Constitution.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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The legislation does not allow me to interfere. The reality is that we will encourage the supermarkets and do everything that is possible. I remind the Deputy that because of our actions last year and the discussions - they were only discussions - we did not have a repeat of what happened the previous year. I hope coming into this Christmas the supermarkets will abide by the general thrust of what they have told me. I do not condone or want them to be doing it. It is bad for the product and for encouraging people to eat vegetables. It sets vegetables out as product that is being dumped. It does not do anything good for the promotion of vegetables.