Pat O'Neill (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy McHugh. I am disappointed that the Minister for Agriculture, Food and the Marine, Deputy Coveney, is not present. I mean no disrespect to the Minister of State in saying that and I am aware that the Minister is currently speaking in the Dáil, perhaps on the same matter.

I tabled this matter because there is a great deal of concern in the agricultural industry, especially among farmers, who are the primary producers, about the proposed takeover of Slaney Meats by ABP Food Group. Such a development would place the latter in a dominant position in the market and that could be to the detriment of farmers. My matter I tabled asks the Minister whether he feels it would have a positive or negative effect on the future of agriculture in this country and whether he would make a submission to the Competition and Consumer Protection Commission. The commission has been in correspondence with the Joint Oireachtas Committee on Agriculture, Food and the Marine, of which I am a member, on this matter. It said it cannot make a comment until the takeover goes ahead. I am concerned about the timing of the takeover. If it takes place within the next couple of weeks, during a general election, no Oireachtas committee will be able to deal with it. The current Minister for Agriculture, Food and the Marine will be operating in an acting capacity. The takeover may, therefore, proceed without due scrutiny.

In the past couple of years, there have been many problems in the beef industry. Rules on full beef, steer beef, specs and weights were imposed by factories and retailers and these worked to the detriment of the farming community. The Minister for Agriculture, Food and the Marine had to intervene in the sector at different stages because beef was in crisis. He established the beef forum - whether it is working is another question, but at least it was established and it is trying to solve our problems in the beef industry. The beef and sheep sectors, including the export of live cattle and meat, employ nearly 280,000 people in this country. It is important that these sectors have the support of the Minister and the Competition and Consumer Protection Commission so that something like this does not happen.

If the ABP group takes over Slaney Meats, it will have 29% of the beef kill, 40% of the lamb kill and 50% of the rendering plants in the country. A big problem on the previous occasion was the rendering plants because rendering is a by-process which must be done. If the ABP group has 50%, it could lead to a lack of competition.

Following the past year, the price gap between our beef and beef in Britain is now €293 per head. It was €97 per head on average over the past ten years. This is because the factories and the retailers have now applied specifications that live Irish exports cannot be killed and put on the shelves in Britain as British beef. That is why it is important that the Minister intervene to sort out the problem with Northern Ireland at present. We have a big problem in that our beef cannot be sent across the Border to Northern Ireland to be slaughtered and get the Red Tractor standard.

The reason I have raised this matter is that I am worried this will have a detrimental effect. I note the Minister is dealing with it in the Dáil and I am interested to hear his reply. The takeover could be timed to occur when this House, the Dáil and the Oireachtas joint committee are at their least effective. It is important that we keep an eye on it and that the Competition and Consumer Protection Commission intervenes to ensure that agriculture is not ignored. Livelihoods are at stake here if this goes ahead and is not dealt with properly.

I am interested to hear the Minister of State's reply. I know he will pass on what I have said to the Minister, who, I suppose, can also see it in the Official Report. I note the Minister is dealing with it.