Dáil debates

Thursday, 9 December 2021

Ceisteanna - Questions - Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Food Industry

9:00 am

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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1. To ask the Minister for Agriculture, Food and the Marine when he will introduce legislation to establish an enforcement authority as per the unfair trading practices Directive; if the legislation will provide for a meat regulator; and the powers that will be within the remit of the authority.. [60436/21]

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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When does the Minister intend to bring forward the long-promised legislation to create an enforcement authority, a food ombudsman or a meat regulator, as I would prefer, as per the unfair trading practices directive? Does he have a sense of the powers he intends to confer on that authority?

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I am committed to bringing much-needed transparency to the food sector. The Deputy will be aware the programme for Government includes a commitment for a new office of a national food ombudsman or equivalent to enforce the unfair trading practices, UTP, directive and to have a role in analysing and reporting on price and market data in Ireland. The establishment of such an office requires primary legislation, which we are progressing.

The Deputy may also be aware that Directive 2019/633 on unfair trading practices in the agricultural and food supply chain, which involves, as the Deputy noted, the establishment of an enforcement authority, was required to be transposed into national law by 1 May 2021. I am happy to advise him that in April this year, before that deadline, I signed a statutory instrument to transpose the directive directly into Irish law and establish the enforcement authority.

I have established a UTP enforcement authority in my Department as an interim measure pending the finalisation of the primary legislation being prepared to establish the new office. However, I assure the Deputy the enforcement authority has been assigned all of the necessary legal powers to investigate complaints from suppliers, including primary producers, to carry out investigations on its own initiative and to initiate legal proceedings for breaches of the UTPs defined in the directive. The authority is undertaking an awareness-raising campaign on the UTP regulations and is engaging with relevant stakeholders in the agricultural and food products supply chain.

With regard to the establishment of the new office of food ombudsman or regulator, preparations for the general scheme of the Bill for the primary legislation are well advanced, and I hope to bring a memo to the Government on the issue early in the new year. Once the primary legislation has been finalised and the new office established, the enforcement authority functions will transfer to it in line with the programme for Government commitments. In the meantime, it is open to suppliers to engage with the enforcement authority on any concerns they may have in regard to unfair trading practices.

Increasing transparency throughout the supply chain is something I believe is very important. The new office will have a specific role in analysing and reporting on price and market data in Ireland, including, importantly, for the meat sector.

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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The unfair trading practices legislation and the issue we referred to has been listed in the legislative agenda of the autumn, the spring, the summer and the autumn again, but it does not seem to have been prioritised to the same extent as other legislation that was announced much later but delivered much sooner. In May, in response to a question, the Minister told us the legislation would be before us by the end of this year. He is now saying he plans to bring a heads of Bill to the Government in the early part of 2022. HIs response indicates he recognises the importance of an authority having strong teeth in terms of enforcement powers, but it has to be asked why there has been a delay up to this point. The consultation process was completed several months ago. People are now asking themselves when they are going to see the meat and the bones, if I can put it that way.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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There is a tremendous thirst within the agrifood sector, particularly among farmers, to ensure transparency will be brought to the food supply chain. I have taken that very seriously since I was appointed and, as the Deputy pointed out, I completed a consultation process, which he contributed to, at the end of the summer. Over the course of the autumn and into winter, much work has been ongoing within the Department to put in place the framework and the preparatory work for that legislation. I have kept Cabinet updated on progress on it. I plan to go to the Government with a memo at the start of next year, from where I will bring forward the legislation.

In budget 2022, I allocated €4 million in the Estimates for the establishment of the new office. The UTP enforcement authority in place within the Department is an important interim measure but its functions will come under the auspices of the new food ombudsman or regulator once the office has been established on a legal basis. It will be important for the sector in the years ahead.

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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It would be useful if the Minister could elaborate on the work that enforcement authority is doing. In May, the unit had three full-time equivalent posts, filled by four staff. Progress was being made on appointing a head of unit but by September and through October, it had only two full-time equivalent staff, again with the promise of a head of unit. It has not received, as far as I am aware, or initiated a single case and not €1 has been spent, other than on the staff costs. The €4 million budget allocation is, of course, welcome but it will be meaningless unless it is used with good effect. The Minister referred to our consultation, in which we outlined the need for an independent meat regulator with real teeth to tackle unfair trading practices and other cartel-like behaviours.

Will the Minister elaborate on what the unit is doing and whether, in its current guise, it has the ability to challenge processers for unfair trading practices?

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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The role of the enforcement authority within my Department, which has been place since May, is to enforce the unfair trading practices directive and other directives that are in place at European level. It has undertaken over recent weeks and months a significant engagement process with those in the food supply chain and those who will be affected by the unfair trading practices directive to inform them of the responsibilities on them to ensure that fair play, proper regulations and structures are in place in their engagement with all suppliers.

In the context of the unfair trading practices directive and any practices that in any way undermine the relationship with suppliers, the authority ensures there is absolute clarity on the responsibilities on all those within the supply chain. Similarly, it ensures suppliers are aware of the opportunity to make a complaint to the enforcement authority too. All of this will be transferred to the new regulator or ombudsman's office once it has been established next year.