Michael Comiskey (Fine Gael) | Oireachtas source

I congratulate the Minister of State on his recent appointment and welcome him to the House on his inaugural visit.

I commend Senator Quinn on publishing the Bill. Many of the issues addressed in it reflect the values which I, as spokesperson on agriculture and as a farmer, have a keen interest in promoting. It reflects the fact that for many years consumers have been developing a greater awareness in regard to the quality of their food and there is an association between the origin and particular characteristics of some foods.

Ireland has, for many years, been identified on the export market as a high-quality producer of food. The agri-food sector contributes massively to the total value of our exports. Ireland has enormous potential, owing to the county's grassland-based output, and exports to similar markets where consumers demand high quality and standards but where there is a deficit in food self-sufficiency.

Unlike many other sectors of the economy, agri-food sources the majority of its inputs, goods and services from the domestic market. It is estimated that the sector retains 76% of its expenditure in the Irish economy. Retention is approximately 30% across the rest of the manufacturing sector. These figures demonstrate the continued importance of the agri-sector and its potential to drive the economy as new markets and consumers recognise the quality and competitiveness of Irish goods.

There are, perhaps, advantages in promoting the providence of foods, in particular in contrast to organic food, most of which is imported. There are benefits for the local economy in encouraging direct market connection between farmers and consumers and encouraging consumers to become more aware of the origin of their foods and to buy local produce in local shops. However, this growth may be constrained by the size of the locality.

Evidence is emerging that larger retailers are responding to consumer sentiment by developing regional sourcing offices. It is important, however, that labelling of providence - although it is an indication of origin, giving rise to an indication of quality - does not result in higher prices for consumers. Anecdotal evidence suggests providence-labelled foods are being sold by some retailers at a premium of 10% to 20%. Providence must not be used as a means of simply adding value. All consumers make choices when purchasing foods, but some are constrained by price.

If the intention is to source local produce for local consumers, by inference transport and storage costs should be significantly lower and should offset any savings made through buying in larger quantities.

While Ireland is a substantial producer of food, national demand is limited and therefore the importance of the European and international markets cannot be ignored. Following membership of the Common Market and subsequently the Single Market, the Irish agricultural sector has been transformed. The Single Market created access to a market of 500 million people for Irish goods by removing administrative burdens for food exporters. The European food market has dramatically changed over the past 40 years and new challenges are emerging. There is, for example, increased demand for traceability from farm to fork. An excellent example of accountability in this regard is the scheme run by An Bord Bia. While I recognise the merits of the Bill, I am also mindful that Irish producers operate as part of that European market. As such, a universal system of labelling would perhaps offer consumers the greatest protection and best position from which to make a choice.

The Bill's requirement that origin must be specified for the first three ingredients could mean that producers are constrained in changing suppliers, as that would necessitate a change in labelling. Any such change will carry an associated cost. I note that the Bill refers to the use-by date of products. I am concerned that in the absence of best-before dates, food wastage may inadvertently be encouraged. In addition, the Bill proposes the inclusion of place of packaging and processing among other details on food packaging. The inclusion of these details may cause confusion among consumers. There is also a concern that these labels might have an impact on the cost of liability insurance, particularly for small producers and processors in an industry where margins are already narrow.

Reputation is paramount for any business, particularly in the food sector. Where a product is bought in small quantities and on a regular basis, reputation and consumer confidence can be particularly fragile. The intense desire to protect their reputation often helps to ensure good practice by manufacturers. It is important that new producers are not discouraged from entering the market.

I acknowledge that there are deficiencies in the current labelling system, which became headline news in respect of beef products some months ago. That incident highlighted how complex the food chain can be and how susceptible it is to fraud. While labelling might enhance consumer confidence, it is not of itself sufficient to ensure against fraud, which is the deliberate and intentional substitution, addition, tampering or misrepresentation of food or a food ingredient. Reform of the labelling system across Europe is expected before the end of the year, with the principal legislation governing food labelling to be repealed and superseded by EU Regulation No. 1169/2011. This wide-ranging regulation is likely to create a positive impact for both consumers and producers. The definition of "ingredient" contained therein includes any substance, additive or enzyme which is used in the manufacture or preparation of foodstuff and still present in the finished product, even if in altered form. The regulation will ensure that accurate and clear information is given to consumers and will help to protect Irish producers from reputational damage. This provision will work in tandem with traceability and DNA testing protocols to ensure confidence in European foodstuffs.

The detection of horsemeat in beef products highlighted serious issues in the food chain, but it is important to remember the role played by the Food Safety Authority of Ireland in highlighting the matter. I have little doubt that the FSAI and other European food safety agencies will take an increasingly aggressive approach to identifying food fraud. Once the new regulation is in place, food processors and producers must endeavour to carry out strict due diligence to ensure both they and their suppliers are up to date and compliant with all existing labelling rules and consumer protection codes.

I once again acknowledge the merit of this Bill Senator Quinn has brought forward today. However, as a member state of the European Union whose agrifood sector in particular has benefited enormously from accession, time should be taken to allow the updated regulation to come into effect. Considerable debate took place with a wide variety of interested parties in advance of formulating that regulation. The measures set out therein will apply across Europe and thus create a level playing field for producers. That is the best position in which our exports can operate.