Tom Hayes (Tipperary South, Fine Gael) | Oireachtas source

I am delighted to be present for this important discussion. I thank the Acting Chairman and Members for the welcome they have given me. I sat in the House for four years many years ago but I learned a great deal. We had some good discussions. The abolition of the House is discussed from time to time but my memories of it are positive. It helped me a great deal on the political ladder.

This is the first Bill I have taken as Minister of State and I would like the debate to be constructive. We can all learn from it. It is important and timely that we discuss this issue. I recognise that the purpose of the Bill is to create transparency regarding the origin of processed foods, beverages, fruit and vegetables as well as meat and fish. This Bill is focused on origin, covering both ingredients and manufacture. It is based on the whole of the product and the production process and is, therefore, comprehensive regarding the origin of the main ingredients, the place of manufacture and packing. The Senator is concerned that the mislabelling of beef due to equine contamination has exposed a number of shortcomings when it comes to the provenance of the food we eat. However, amended labelling legislation alone would not have stopped certain individuals intent on fraud from misleading the consumer by incorporating into finished products ingredients not properly declared in the ingredients list for the products concerned.

Under current EU regulations, the issue of origin as an essential part of consumer information has traditionally only been a focus for products under the EU scheme of protected geographical indications where quality is considered to be intrinsically linked to certain regions. In other cases, it is considered that origin has to be declared where its absence might mislead consumers to a material degree. However, a great deal of good work and positive developments on labelling legislation are ongoing at EU level on this issue. In 2011 the Union passed a new Council regulation on food information for the consumers, FIC, Regulation 1169/2011, which has updated the requirements for consumer information and labelling in a number of areas, including country of origin or place of provenance, including the origin labelling for meats other than beef, voluntary labelling of all foods and the mandatory labelling of meat as an ingredient. These requirements will have to be implemented by way of EU Commission implementing regulations and it is expected that they will come into force between December 2013 and the end of 2014. A Commission working group is dealing with this legislation and it is discussing the mandatory origin labelling of fresh meat from species other than beef, voluntary origin labelling of foods and the mandatory origin labelling of meat as an ingredient.

We need to bear in mind that the EU operates a Single Market for food and it is in Ireland's interest, as a food exporting nation, to adhere to this concept. Harmonised rules on traceability, animal health and welfare and food labelling are of great advantage to Ireland, which has to export the vast majority of its agricultural output in either a raw or processed form. This is important as we continue to develop access to other markets. Ireland has an excellent reputation with a robust food safety system underpinned by the European institutes such as the food and veterinary office and the European Food Safety Authority.

If Ireland, as one of 28 member states of the European Union, sets out new mandatory rules for food labelling in advance of agreed EU rules, it will impose additional costs on our food processing sector compared to competitor countries. Such unilateral action could also set a precedent for the introduction of similar rules in other member states, which may reduce the opportunities for Irish produce to be sold on EU markets.

Some 90% of all Irish beef is sold within the European Union, with some 50% of these exports going to the United Kingdom alone. With an increasing and bigger market in Germany and given the possibilities for the export of beef to that country, if it, or France, had different rules and regulations, both countries could stop our meat going to these countries. While consumers are often assumed to place great importance on origin labelling, the fact is that the available market intelligence suggests that when it comes to purchasing practice, price is the dominant factor in determining final purchasing decisions. It is very important that we do not force the industry to incur unnecessary costs, particularly at a time when we are pushing expansion of the agrifood sector. Irish food and drinks firms export to 170 markets worldwide and exports are growing faster than in many other sectors in recent years. The value of these exports reached €9 billion in 2012. In fact, the value of Irish agrifood exports outside Europe overall grew strongly, for example, agrifood exports to Africa are now worth over €500 million.

This morning I attended the open day in Moorepark and saw the enthusiasm and commitment of the food producers, that is, the farmers and the milk and beef producers. Thousands of people flocked there. They want to build on the Food Harvest 2020 strategy and produce more food. The milk they produce goes to companies such as Glanbia which Senator Feargal Quinn mentioned. The consumer and the producer must work hand in hand. What I saw today, the green grass and the excellent product we have, will give us a huge advantage when competing in markets. However, markets can be cyclical. The milk market, in particular, can be very cyclical and there will be difficulties in the future. The same applies to the beef and sheep sectors. They will all face difficulties; therefore, we must take advantage of the wonderful grass growing conditions in this country and the efforts of Teagasc to make us more efficient across the board.

Members will appreciate that legislation on food labelling is still evolving. This Bill is a useful contribution to the debate on food labelling and Senator Feargal Quinn is to be congratulated on his work on it. Consumers want to know more about the origins of their food, but the timing of this Bill is not right, bearing in mind the ongoing EU discussions that I mentioned. To proceed unilaterally with the Bill would increase costs for the industry and place greater demands and costs on the sector than are being considered at EU level.

Information on food provenance should address the legitimate concerns of consumers in an appropriate way and without excessive complexity, while avoiding any unnecessary imposition of additional costs on consumers. Any such approach should take into consideration the potential impact on the food industry and the farm sector as it could negatively impact on the sector and its dependence on exports. The potential of the Bill to increase costs for industry and, therefore, for consumers and place greater demands and costs than those being considered at EU level would have to be fully analysed against the benefits it might confer on consumers. We need to be mindful of this, particularly with our focus on further developing the agrifood industry as outlined in Food Harvest 2020.

It is proposed not to accept the Bill but to engage with the Senator on its contents at a later stage when the EU process has moved forward. I will ask the officials in the Department to take on board the many good aspects of the Bill, with many of which I agree. I will give a commitment that what the Senator has said and what is contained in the Bill will be part of the overall legislative issues dealt with by the Department which will be brought back before the House. While I cannot accept the Bill at this stage, I hope the Senator will agree not to put it to a vote. All of us have the aim of protecting our food and giving the consumer what they want in a product.

What the European Union does is also of interest to this country. Ireland is a net exporter of food and depends on many other EU countries. Only last week there was an example of how difficult this was. One can say we should leave the European Union out of this, but the reality is that we are part of it and gaining from it. There are 28 member states and I saw last week at first hand that it was a huge job of work to get them to come together on issues. Every effort will be made by the Department to deal with this issue as soon as possible and take on board what the Senator has included in the Bill and what the many other contributors will say in this debate.