Larry Butler (Fianna Fail)

I am delighted that we are adopting such great enthusiasm in this country for Fairtrade. There was a time when we had to do a great deal of work to put our products on the market and we were paid very little. Fairtrade Fortnight 2008 was launched on Monday 25 February by the Minister of State at the Department of Foreign Affairs, Deputy Michael Kitt. Fairtrade sales grew by 75% last year, which is an enormous success. We now have more than 60 voluntary Fairtrade towns committees around Ireland and 31 of them have met the criteria to become Fairtrade towns. There were some real breakthroughs last year and we expect this trend to continue in 2008. It is important that we have the commitment to do so.

This year's campaign is on the simple changes Irish consumers and businesses can make to help the lives of people in developing countries. Everyone knows that Fairtrade makes a difference and while it does not change the world on its own it contributes to real and lasting improvements in the lives of hundreds of thousands people in the Third World. This is an extremely important aspect of Fairtrade. Fairtrade Fortnight 2008 coincides with the announcement that the Dáil and Seanad restaurants and bars will use Fairtrade products.

Last week, Dublin joined a select group of European capitals, including Rome and Edinburgh, when it was awarded Fairtrade capital city status. This is a wonderful achievement. The Minister of State at the Department of Foreign Affairs with responsibility for overseas development, Deputy Michael Kitt believes the right kind of trade empowers rather than exploits communities in the developing world and it is for this reason that Irish Aid is one of the largest international supporters of Fairtrade.

Worldwide, consumers spent €1.6 billion on Fairtrade certified products in 2006, according to Fairtrade Labelling Organizations International, FLO. This is a 41% increase on the previous year, directly benefiting more than 1.4 million producers and workers worldwide. Impressive growth figures can be seen across product categories, with increases in particular in cocoa by 93%, coffee by 53%, tea by 41% and bananas by 31%. Fairtrade cotton farmers have also seen how the demand for their produce has more than doubled in one year. Retail sales of Fairtrade products in Ireland increased by 74% to more than €20 million in 2007. This is an increase from €11.5 million in 2006. These are impressive figures.

Traditional Fairtrade products like coffee and tea are stocked by all the main retailers including Tesco, Dunnes Stores, Marks and Spencer, Lidl, Superquinn, Londis, SuperValu, Centra, and Spar. That large companies such as these take the products shows a real commitment to Fairtrade. It also proves that the quality of the product is good.

Marks & Spencer now stocks more than 50 Fairtrade products with Tesco, Superquinn, and SuperValu moving in the same direction. Lidl recently announced it is switching all its organic bananas to Fairtrade organic bananas which will quadruple the volume of Fairtrade bananas sold in their stores.

Mr. Peter Gaynor stated that Fairtrade is crossing the Rubicon from the marginal to the mainstream with regard to the recent growth in Fairtrade, including the launch by Dunnes Stores of its own-label range of Fairtade-certified cotton towels as well as the recent launch by the Jack & Jones retail chain of a range of trendy men's clothing made from Fairtrade certified cotton. Other high profile nationwide chains and companies, including Insomnia Coffee Company, Java Republic and the Thomas Read Group, continue to expand their commitment to Fairtrade mark products.

Stocking Fairtrade mark products is not just an ethical action; it is also good for business. Tessa Van Rensburg, Java Republic's marketing director, has stated:

Interest in Fairtrade is phenomenal. Consumers now realise the product is better than it was five years ago. You can see that by the amount of people changing over to Fairtrade coffee.

The Insomnia chain of cafes has reported a 5% to 10% increase in like-for-like sales after switching 100% to Fairtrade mark coffee.

Nimrod Wimbette, a member of a Ugandan coffee co-operative, stated:

Since joining the Fairtrade family, the horizon for us small farmers looks brighter with each harvest. The benefits include a guaranteed price for our product and a social premium for economic and social projects such as roads and schools which benefit all people who live in the coffee growing areas.

Ireland has been good at ensuring a fair price is paid for products. We must not forget also that some of our farmers are struggling to secure a fair price from the supermarkets for their products.

The Fairtrade Mark Ireland was established in 1992 to promote justice in trade between Irish consumers and producers and workers in developing countries. Fairtrade products are sourced directly from the producer, ensuring producers receive a fair and stable price for their products. The organisation is supported by the main development agencies, including Action Aid Ireland, Concern and Christian Aid.

The first two tonnes of Fairtrade coffee beans were imported into Ireland in November 1996, increasing to 400 tonnes by 2007. An IMS consumer survey conducted in April 2007 found 53% of people are aware of the Fairtrade mark, compared with just 16% in 2002. It is all about marketing. The current Fairtrade fortnight will make a difference to those struggling in the developing world. While we had our breakfast this morning, many others in the world did not.

Up to 26 towns and cities have been awarded Fairtrade town status, including Athlone, Bandon, Bantry, Belfast, Bray, Limerick, Maynooth, Mullingar, Newry and Wexford. During this year's Fairtrade fortnight, Baltinglass, Ennis, Newbridge, Roscommon and Sligo will be awarded Fairtrade town status.

The problems experienced by poor producers and workers in developing countries differ greatly from product to product. For example, the majority of coffee and cocoa is grown by independent small farmers, working their own land and marketing their produce through a local cooperative. For these producers, receiving a fair price is more important than any other aspect of fair trade. Most tea, however, is grown on estates. The concern for workers employed on tea plantations is fair wages and decent working conditions. That is the least we must demand of all imported products.

Trading standards for licensees using the Fairtrade mark on their products stipulate that traders must pay a price to producers to cover the costs of sustainable production and living, pay a premium that producers can invest in development and sign contracts that allow for long-term planning and sustainable production practices.