Thomas Pringle (Donegal South West, Independent)
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8. To ask the Minister for Agriculture, Food and the Marine if he will make a submission to the Competition and Consumer Protection Authority on the takeover of Irish Country Meats by Anglo Irish Beef Processors; and if he will make a statement on the matter. [2294/16]

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Deputy Pringle should buy a lottery ticket. He is doing very well.

Thomas Pringle (Donegal South West, Independent)
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I do not think I would be as lucky on that somehow.

Simon Coveney (Cork South Central, Fine Gael)
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Are the machines working here?

Thomas Pringle (Donegal South West, Independent)
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This question deals with something that is quite topical within the farming sector. It concerns the purchase by Anglo Irish Beef Processors, AIBP, of 50% of Irish Country Meats. What implications could that have for the beef and lamb processing sectors across the country?

Simon Coveney (Cork South Central, Fine Gael)
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I would like to put on the record what the position is because many people have raised concerns with me about this issue. The relevant Oireachtas committee has referred the matter to the Competition Authority for examination.

Mergers and acquisitions of businesses within the State are subject to a process of examination to ensure consumers or other businesses do not suffer, or that the merger or acquisition does not lead to a reduction in competition.

I understand that, depending on the turnover of organisations involved in an acquisition or merger, either the Competition and Consumer Protection Commission or the EU Commission will conduct an examination to determine whether there will be any “substantial lessening of competition”. That is the term used.

As part of this process the examination of the proposed takeover will involve either a one or two-stage investigation by the relevant authorities, at the end of which the authorities may unconditionally clear the merger, approve the merger subject to remedies, or prohibit the merger if no adequate remedies to the competition concerns have been proposed by the merging parties. I am satisfied that this process will ensure a thorough and independent assessment of the impact of the proposed takeover on the Irish beef industry.

Concerns have been expressed and there is a system to deal with those concerns. There is an Oireachtas committee and many other people looking at it to see what is the outcome. My view is to let the system work. If there are no competition issues as a result of this, it will proceed. If there are competition issues, however, they will either have to be addressed or else they will not be able to go ahead.

Thomas Pringle (Donegal South West, Independent)
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That is a clear outline of the process that is involved in making the decision, in terms of the Competition Authority. However, the key point is that as the national policy deviser or driver for the agricultural sector, my specific question is whether the Minister and his Department will be prepared to make a submission to the Competition Authority should a call be made for interested parties. Surely, the Department would be an interested party, particularly when one considers that this merger will give 29% of the beef kill control to AIBP, and 40% of the lamb kill. It is significant that 50% of the rendering business across the country will be under the control of a single operator if this takeover goes ahead.

I am sure there must be some policy concerns within the Department to see the concentration of control in one person's hands. If the Competition Authority makes a public call for submissions, will the Department make a submission on it?

Simon Coveney (Cork South Central, Fine Gael)
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We will work with the system. If the Competition Authority asks for our opinion on anything we will obviously give full details of our views from a policy viewpoint. However, there are dangers with Ministers getting involved in trying to impact on mergers. There is a State body that has a legal obligation to assess these things properly and make informed choices. We all call it the Competition Authority but it is now titled the Competition and Consumer Protection Commission. It is a pretty robust organisation. I have already received letters from them warning me not to stray into price negotiation areas with the beef forum, for example. They are watching this sector pretty closely, so let us see what they have to say.

Thomas Pringle (Donegal South West, Independent)
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The Competition Authority may not ask the Department directly for its views on this. The authority may advertise that it is considering this merger and acquisition, and seek submissions from interested parties. Is the Department an interested party concerning this matter?

Simon Coveney (Cork South Central, Fine Gael)
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My Department can provide statistics and details, but I do not think it is qualified to make judgment calls on competition issues. That is what the Competition and Consumer Protection Commission is there for. If they ask us for information or a policy perspective, we will of course give it to them. I cannot be more open than that.