Michael Kitt (Galway East, Fianna Fail)
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I thank the Members for the opportunity to present a statement on Fairtrade to the Seanad and to set out Irish Aid supports provided to Fairtrade.

Irish Aid is among the largest donors to Fairtrade in the world. We have supported the Irish Fairtrade Network since 2002 and approved grants of more than €8.5 million in support of producers in developing countries and development education work in Ireland. Irish Aid has a longstanding record of support for Fairtrade producers in Central America. Due to the success of this work, similar programmes of support are being considered for East Africa producers.

As set out in the programme for Government, the Government is committed to ensuring that the sourcing of Fairtrade goods, where possible, is part of the purchasing policy of all Departments. As Senators are aware, the White Paper on Irish Aid published last year put the case for trade and development when it states:

Increased trade, regionally and globally, is central to sustained economic growth for the world's least developed countries, but we recognize that developing countries need assistance to enhance their capacity to produce, deliver and sell goods and services.

We are committed to increase our financial support for initiatives which promote fair and ethical trade.

The World Development Report 2008: Agriculture for Development concludes that investment in agriculture is four times as effective as any other investment in reducing poverty. In particular, the report explored how what is termed "decommodification", through brand identity such as Fairtrade, of some traditional agricultural products opened alternative markets for higher value products.

Increased investment in international trade in agriculture will have a significant impact on poverty reduction. However, this will be true only if prices paid to farmers are sufficient to cover their costs, provide them with a decent livelihood and allow enough of a surplus for investment in the future. Fairtrade markets offer a fair price for farmers' produce and a social premium for local development. The price is sustained even through times of market fluctuations that cause loss of income, often with a tragic impact on rural families.

Business development requires access to markets for farmers in developing countries where many of the products we consume are produced. Equally, Irish and EU businesses require a constant guaranteed supply of high quality products. This is the basis for a mutually beneficial long-term partnership between farmers in developing countries and Irish businesses.

Fairtrade provides independently certified direct links between Irish companies and the producers in the countries concerned and the major benefit to small farmers lies in better access to markets in Europe and North America as well as in Ireland. Irish Aid is working with organisations such as the Irish Fair Trade Network to improve the livelihoods of people in some of the poorest countries in the world. For this reason, I am pleased that Ireland is one of the largest international donors to fair trade world-wide. We provide funding to support farmers and agricultural workers to improve the quality of their products so that they can access fair trade certified markets.

Fairtrade Mark Ireland is the main project of the Irish Fair Trade Network, a registered charity which was set up in 1992 with the support of individuals and all the main Third World charities in Ireland. The objective of the organisation is to promote justice in trade between people in Ireland and people in Third World countries. Fairtrade Mark Ireland awards a consumer label, the Fairtrade Mark, to products which meet internationally recognised standards of fair trade. It is a small charity based in Dublin supported by Amnesty International, Actionaid Ireland, Christian Aid, Comhlámh, Concern, Oxfam Ireland, Trócaire and the Irish Congress of Trade Unions.

Fair trade is active throughout Ireland via a supporter network of dedicated volunteers, involved in the promotion of fair trade, such as the Fairtrade Towns project, and Fairtrade Mark products. There are now 31 fair trade towns and cities throughout the country and 30 more are seeking fair trade town status. Dublin city was awarded fair trade capital status. The growth in fair trade towns and the increasing awareness of the importance of fair trade among Irish consumers is principally due to the work of 61 voluntary committees, North and South. According to a Millard Brown IMS consumer survey, awareness of the fair trade label in Ireland has grown from 16% of Irish adults in 2002 to 53% of Irish adults in 2007.

Fair trade also plays a key role in engaging the public with development issues and deepening public understanding about the role Ireland is playing in tackling global poverty. Irish Aid is committed to supporting development education and, by using the role of fair trade in building this understanding, will continue to support work in this important area. For many years Irish Aid has funded the Irish Fair Trade Network via the development education funding scheme. The network received €125,000 in 2005, €135,000 in 2006 and €150,000 in 2007. This development education work aims to increase public awareness of the values of fair trade through educational materials and events and projects including Fairtrade Fortnight and fair trade towns.

The positive impacts of the fair trade campaign are easy to grasp. For this reason it attracts people with a broad interest in development issues and encourages them to learn more. This is reflected in the hundreds of individual initiatives throughout the country, from the conversion of school cafeterias to fair trade, to education programmes in schools and universities. Fair trade is also part of the Irish school curriculum and features in subject areas such as civic, social and political education, CSPE, and geography. Leaving certificate geography examinations now include questions on fair trade.

Irish Aid has played an important role in supporting capacity building for small producers in Central America through its funding for Fairtrade Labelling Organizations (FLO) International, of which Irish Fair Trade Network, IFN, is the Irish member, under our Central America programme. This funding amounted to €567,000 for the period 2003-06.

The focus of the Central America programme has been to increase the quality and quantity of coffee supplied to fair trade certified niche markets, principally in Ireland and elsewhere in Europe. Key elements include market access and mutual support to guarantee timely supply to international coffee roasters.

The programme also funds conversion to organic coffee, GPS mapping of farms, development of processing plant and infrastructure, improving product quality, efficient and reliable business management, personnel training and consolidating links with Irish coffee roasters, including Bewley's, and other large European coffee companies.

I would like to cite some concrete examples of the impact of this support. The programme has had an immediate impact by stabilising small producers' income during the most recent collapse of international coffee prices, which reached their lowest level in 35 years in 2002-03. It helped by changing the focus of the producers from marketing a product based on volume to one based on improving quality, producing specialist coffees, segmenting their market, identifying niche markets and converting to organic products. That integrated approach contributed to an increase in local employment.

Fair trade is helping to diversify out of monoculture, with coffee growers developing citrus fruits, banana farmers moving into other premium tropical products and other rural communities investing in eco-tourism. In this context, Irish Fair Trade Network received grant approval for €7.5 million from Irish Aid in support for two initiatives in the fair trade sector in Central America over the period 2006-2010.

A total of €3.25 million is provided to increase support for the Fairtrade Labelling Organisations' capacity building programme for small producers and builds on the elements of the previous programme. Funding is also provided to Irish Fair Trade Network to support UTZ Certified, the world's largest established certification body for mainstream coffee and other products. That funding of €3.25 million provides support to coffee producers in Central America to enable them meet acceptable quality, social and environmental standards similar to the ISO2000 approach.

Building on the success of the Irish Aid support to Fairtrade producers in Central America, the Irish Fair Trade Network is now preparing a similar programme for Tanzania, Kenya, Ethiopia and Uganda. It is hoped this work can commence in 2008. Progress can be made only to the extent to which donors, large and small, work jointly.

Irish Aid participates in a European donor co-ordination group designed to support the expansion of access to Fairtrade certified markets. Although most Fairtrade products are produced by small-scale farmers, some of the products also come from large farms and plantations. Irish Aid also supports the work of the Fairtrade movement in encouraging plantations to comply with labour and environmental legislation. This includes paying decent wages, guaranteeing the right to join trade unions and providing good and safe conditions for their workers in accordance with International Labour Organisation core conventions.

In Ireland companies such as Bewley's, Blakes Organic Chocolate Company, Cafedirect, Java Republic Roasting Company, Robert Roberts, Fyffes, O'Brien's Sandwich Bars, Insomnia Coffee Company, Superquinn, Tesco, SuperValu, Dunnes Stores, Marks & Spencer and many more now offer consumers a range of Fairtrade products.

In Ireland and other developed economies Fairtrade has become a viable and growing niche market for products from developing country producers. Irish Aid is committed to working with Fairtrade and with Irish companies to promote fair trading. It is probably not surprising that as Fairtrade grows, it is becoming the subject of comment, praise and criticism. It has many advocates but it also has some critics.

To coincide with Fairtrade Fortnight this year, a London based conservative think-tank, the Adam Smith Institute, issued a critical report. It suggests that Fairtrade benefits a small number of farmers in developing countries and is wrong in principle. It suggests that more free trade is what is needed. It also suggests that the impact of Fairtrade is less than it claims for itself.

Professor Frank Barry, professor of international development and business at Trinity College Dublin, states:

By seeking to influence the behaviour of consumers, the [Fairtrade] movement harnesses that most powerful instrument — the market mechanism — to affect economic outcomes by strengthening the hand of impoverished developing-country producers.

He goes on to state:

Although still relatively small — global sales of Fairtrade certified products amounted to about €1.5 billion in 2006 — this was almost a 100% increase on the 2005 figure, so it is growing fast. One and a half million disadvantaged developing-country producers have benefited directly from the Fairtrade initiative, while an additional four to five million are benefiting from the community development projects and rural infrastructure that the Fairtrade premia have funded. A Trojan horse for protectionism it is not.

I assure the House that Irish Aid's current financial support for Fairtrade and ethical trade certification schemes is carefully monitored. In addition, longer-term studies of impact are now under way to ensure that the Fairtrade system does what it says and to indicate areas in which it might be improved if this proves necessary.

I should make clear that Irish Aid funding is not used to engage in some kind of market fixing or price support. It is used to improve agricultural practices to ensure that the small farmers' organisations concerned can meet the standards required to gain Fairtrade certification. That includes agricultural advice and training, small investment in equipment, small credit funds, proper administration and marketing systems and the like.

The Fairtrade system has won prestigious international human rights and development awards, including the King Baudouin Prize, Europe's premier human rights award. The continued growth in awareness of Fairtrade and purchases of certified products by the Irish public is mirrored by support for Fairtrade by Irish Aid and the Government. I look forward to working with the Members in this endeavour.

Maurice Cummins (Fine Gael)
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I welcome the Minister of State, Deputy Kitt, to the House.

We held a worthwhile debate on overseas aid in the House some weeks ago and today our focus is on fair trade at a time when we also celebrate Fair Trade Fortnight.

We should welcome the growth of Fairtrade towns and cities throughout our country. It is a welcome development and one that is extremely beneficial for schools, youth groups and the community in general. In Waterford, the One World Centre is doing great work organising workshops, projects and events that explore a range of development themes such as fair trade, human rights, sustainable development, cultural diversity, racism and many other subjects which greatly assist the community in understanding the needs of the developing world. It increases the understanding of economic, social, political and environmental forces which shape our lives and develops the attitudes, skills and values which enable people to work together and to bring about change. It also works towards achieving a more just and sustainable world in which power and resources are shared more equitably.

What is Fairtrade? It is a movement to help producers in developing countries gain fair access to their markets. It involves campaigning for a more just trading system. It involves small producers and helps them to sell their goods and produce directly to consumers in commercially developed countries such as Ireland. It helps those small producers to avoid the middle men who often exploited them in the past.

Danilo Nunez, a small sesame seed farmer from Nicaragua, states:

Fairtrade provides us with security when the market-price falls and allows us to survive as farmers. Without it, we would be swallowed up by large-scale agriculture and end up as farm labourers.

That brings home to us the importance of Fairtrade and highlights the need for us as a rich, developed country to ensure we do everything possible to promote and assist Fairtrade projects which, in turn, will help small producers like Danilo Nunez. Here in the Houses of the Oireachtas we serve Fairtrade tea and coffee and I welcome the Government's commitment to source Fairtrade goods wherever possible. Every little step helps and I note from recent statistics that, as the Minister of State stated, Fairtrade sales grew by about 75% again last year in Ireland.

Sub-Saharan Africa attracts less than 3% of global foreign direct investment. The least developed countries share in global exports has fallen steadily from 3% in the 1950s to the current level of 0.5%. Increased trade is central to sustained economic growth in these least developed countries. It is important to note that Africa has the potential to earn from trade many times more than what it obtains in official development assistance.

Ireland must be, and we are to a certain extent, to the forefront in providing assistance to enhance these countries' capacity to produce, deliver and sell goods. There is no doubt that the ability of a country to benefit from more liberalised trade depends on the strength and productivity of its domestic economy. Developing countries are more vulnerable and need more protection and we must ensure always in world trade talks that this protection is afforded to developing countries throughout the world. It is essential that the poorest and weakest countries are not overwhelmed and marginalised but, instead, are able to put forward and defend their own interests so the outcome is a just and equitable trading system which provides the greatest opportunities for those most in need.

The principles of the Fairtrade movement are ones which any Irish Government should continue to support and they include creating economic opportunities, capacity building, a fair-pricing structure, gender equality, safe and healthy working conditions and the protection of the environment. Researchers have found that Fairtrade has significant impacts on the lives of local producers which include greater economic stability, decreased child mortality, increased food consumption and increased educational attainment. Overall, it has been established that participation in a Fairtrade co-operative results in a better quality of life for all concerned.

By coincidence, a couple of hours ago I received correspondence from a constituent advising me that he will facilitate a group of Nepalese businessmen who will visit Ireland from 6 to 13 April. They hope to make contact with companies and organisations who may be interested in their products. Nepal is an extremely poor country with few of the economic and infrastructural advantages we enjoy in Ireland. It is one of the poorest countries in the world, with 30% of the population living below the poverty line and unemployment rates in excess of 40%. I hope that during this visit, the Minister of State or someone in his Department might meet the group and discuss its needs.

I wish to pay tribute to the staff and volunteers in the 26 towns and cities throughout this country which have already achieved Fairtrade status. Their work is extremely important in reminding us that we must use every means at our disposal to prevent exploitation of weaker and poorer nations and that by purchasing Fairtrade products we, as individuals, are helping in some small way.

Larry Butler (Fianna Fail)
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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.

Feargal Quinn (Independent)
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I wish to share time with Senators Norris and Mullen.

Paul Bradford (Fine Gael)
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Is that agreed? Agreed.

Feargal Quinn (Independent)
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I have been an enthusiast for Fairtrade ever since it started in 1996. Then I was honoured to be asked to go on board the SV Estelle when it came to Dublin to promote Bewley's first Fairtrade coffee.

A certain ambiguity surrounds the term "fair trade". The Fairtrade movement, which spells it as one word, is the meaning that most people are more familiar with, given that it has operated mainly at the retail level. Fairtrade aims to create a situation in which the producers of certain goods in developing countries are paid a fair price for the work they put in. The resulting products are sold under the Fairtrade label in developed countries such as our own. The invitation to customers is to pay a premium price for these products in return for the assurance the original producers will get a better deal. This started out originally with coffee and has since extended to a broad range of other products. It has been notably successful in Ireland.

However, this is not the whole story of fair trade. The success of the Fairtrade initiative, which I applaud, tends to mask a much wider problem. The world trading system, in general, is systemically opposed to the notion of fair trading in agriculture between the developing countries and the developed world. This is the conundrum the World Trade Organisation, WTO, has been struggling to resolve for many years and what the present Doha round of trade talks are all about.

Put simply, the developed world — most notably Europe and America — operates a highly protectionist scheme in agriculture. To protect the narrow interests of its farmers, the developed world has tried to keep out produce from the developing world. Even worse, by flooding world markets with its surplus products at subsidised prices, it has depressed the market possibilities for the products of the developing world. Not only do we largely keep the developing world's products out of our markets, we also undermine their sales efforts in the rest of the world, including their home markets.

For anyone who regards all human beings as equal, this market behaviour is simply wrong. It is morally reprehensible and cannot be defended on any basis but pure national selfishness. I have said before this behaviour makes me ashamed to be an Irishman, a European, even a citizen of the developed world. How will we explain this to future generations? We are the evil-doers. Our policy should be to end this evil as quickly as possible.

It makes me especially sad that Ireland is among the most active players in the EU when it comes to this. We and the French are the unholy alliance driving EU policy on world trade. It is we who are trying to defend the indefensible.

It is particularly ironic that the same developed countries which are most actively protectionist when it comes to agriculture are also the most generous as development aid donors to the developing world. Despite this, it has been calculated on many occasions that the sum total of all our development aid is of less value to the developing countries than they would gain from a truly fair world trading system. "Trade, not aid" is a slogan that seeks to encapsulate this irony, and it does it very well. Trade, not aid, is what we should be aiming for.

Before the friends of Irish farming in this and the other House have another of their ritual apoplectic fits, I will point out that I am not speaking against the interests of farmers in pleading for a fair world trade deal. However, I believe farmers are our problem, or a European problem. We should not expect the developing world to bear the costs involved in looking after European farmers. In particular, we should not allow our farmers to dictate a morally reprehensible trade policy to the country and by extension to the whole of Europe.

The amount we spend on development aid, which in one way does Ireland considerable credit, is a mask for an overall trade policy which is nothing to be proud of. In fact, it is one of which we should be thoroughly ashamed. It saddens me that I am one of the few Oireachtas Members who is prepared to stand up and publicly acknowledge these truths. Equally, the success of the fair trade movement in Ireland — which, as I have said, I warmly applaud — should not blind us to the fact that in our overall trade policy we are effectively opponents, not supporters, of fair trade. It would be a tragedy if the many good people who deliberately buy Fairtrade products here in Ireland for the best possible reasons were fooled into thinking that our national policies share and reflect their views. Unfortunately, they do not.

Paul Bradford (Fine Gael)
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Senators Norris and Mullen have six minutes to share as they see fit.

David Norris (Independent)
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Could you let me know when I have had three?

Paul Bradford (Fine Gael)
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Yes; thank you.

David Norris (Independent)
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And then I will ignore you.

I compliment Senator Quinn on his extraordinary courage and honesty. He has gone right to the heart of the matter. It is good to hear that from the heart of the commercial world. What we are dealing with is a historical discrepancy between what was paid to producers at ground level and the enormous profits made by large corporations. We have only to consider the phrase "banana republic" to see this. Bananas are one of the original products for which this was the case. The Americans, for example, colonised parts of Central America commercially and turned people to slave labour in the interests of large banana companies.

I remember some years ago there was a significant row about the production of chocolate, which is a very ordinary thing. Within the past ten years——

Mary White (Fianna Fail)
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It is not ordinary.

David Norris (Independent)
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I stand reproved. I am sure Senator White, who is a decent person, will accept that conditions in the cacao harvest in certain central American countries were completely abominable, involving the exploitation of child labour.

It is interesting that when the Fairtrade movement began in the 1950s and 1960s, it was largely a religious movement. That is still reflected to a certain extent in the organisations involved, which include Christian Aid, Comhlámh, Concern, Oxfam, Irish Aid, Action Aid and Trócaire, as well as some trade union groups. We should pay tribute to them. The political organisation was started in the Netherlands in the 1960s. Senator Quinn played an interesting role by being involved in the 1996 launch of Bewley's Fairtrade coffee in Ireland. The association with Bewley's is appropriate because the Bewleys were a great Quaker family who had a sense of justice and fair play. The interesting thing is the way in which the market has grown exponentially. After the launch in 1996, sales of Fairtrade coffee reached €1 million in 2002, while in 2007 they reached €20 million. That is an enormous and marvellous increase.

We have improved on this with the development of Fairtrade labelling. In Europe, some Fairtrade-marked goods have a 20% national market share, and sales are growing by 40% every year, which is interesting. Towns all over Ireland have become involved by having the local council pass a resolution and setting proportionate targets per head of population in terms of retail outlets, catering companies, and so on.

Senators:

Unless the Senator wishes to silence Senator Mullen, I ask him to finish.

David Norris (Independent)
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I certainly do not.

The fair trade movement creates opportunities for economically disadvantaged people, improves transparency and accountability and builds capacity. The payment of a fair price, negotiated locally, is important. It also contributes to gender equality by ensuring that men and women are treated equally in local areas. It ensures safe and healthy working conditions and better environmental practices. Everybody in the House wishes to support Fairtrade. Representatives of Fairtrade were in the Houses last week, in the restaurant, and we were all at the launch of the Fairtrade event at the Royal College of Physicians. I am happy to yield to Senator Mullen.

Rónán Mullen (Independent)
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I thank Senators Norris and Quinn.

There are two points I wish to cover in the brief time available. One is to commend the free trade movement and its work generally, while the other is a consideration of fair trade as a global issue on which we in Ireland should take a strong stand. We all agree that the development of the fair trade movement is a good-news story. It is an issue on which people have been able to think globally and act locally. Many of us feel powerless to have a positive impact on economic matters at a global level in support of the less well-off or the most disadvantaged people in our society. One of the great strengths of the fair trade movement is that it allows us to redress that feeling of powerlessness. The good news is that fair trade sales grew by about 75% in the past year. We must commend the work that is being done, particularly in the education sector. For example, in our primary schools the Alive-O 8 religious education pack has a feature on fair trade, and the CSPE courses focus on the concept of interdependence. At third level, NUI Maynooth became the first university to be accredited as a Fairtrade university in April 2006.

In general terms, when we talk about the issue of fair trade, we all feel we are doing something good. It is great that so many more Irish people are now conscious of the Fairtrade brand, as explained by the Minister. However, we all know that purchasing Fairtrade goods is but a small step unless we seek to influence the broader area of trade agreements on a worldwide basis. We must remember that the purpose of the economy is to serve the common good by meeting the material needs of the individual. As consumers our choices can enhance or diminish economic opportunity for families and communities in developing countries. As we have heard, the Fairtrade initiative is an alternative approach that ensures better prices for farmers and producers. However, we must focus on what the principle of subsidiarity requires of us at the level of global trade. Current international trading practice does not provide much incentive for application of the fair trade principle or the principle of subsidiarity. As pointed out by Trócaire, while Ireland's goal to increase its official level of development assistance to 0.7% of GNP by 2012 is laudable, these aims must be accompanied by an effort to tackle inequitable conditions in the global trade system. In a recent policy document by Trócaire, a convincing argument is made for policy coherence.

There is not enough debate in the Houses about trade negotiations. If we do manage to focus on this issue, it is to be hoped that Ireland can play a stronger part in urging the EU, in the context of the economic partnership agreement currently being negotiated, to make sure negotiations are aimed at making global trade rules more development-friendly. Our ability to ensure that vulnerable farming communities in developing countries can prosper depends on the establishment of a system of international trade which allows developing countries to pursue policies that foster competitiveness among local producers and address the protectionist practices of developed countries. In that context I strongly support the points made by Senator Quinn.

According to Trócaire, it is estimated that if Africa were to increase its share of world exports by just 1%, tens of millions of people would be lifted out of poverty. That is a statistic that should exercise our minds.

Déirdre de Búrca (Green Party)
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I wish to share my time with Senator Mary White.

I welcome the Minister of State, Deputy Kitt, to the House and thank him for his statement on fair trade. I also welcome the opportunity to participate in this debate during Fairtrade fortnight. I acknowledge the long record of support by Irish Aid of the Fairtrade movement and the hard work of the Irish Fair Trade Network, which is supported by the Government and has been responsible for the huge increase in consumer awareness in this country and elsewhere of the concept of fair trade. A Senator said earlier that fair trade equals trade justice but, unfortunately, the trading rules that apply in the international trading system at present contain little that is just.

As other Senators have said, however, there is a growing awareness on the part of consumers that price cannot be the only criterion on which they base their purchasing decisions. They must consider also issues such as the conditions in which particular products are produced, labour standards, health and safety regulations and, critically, the price paid to producers for goods. The origin of the Fairtrade movement is the realisation that producers in developing countries often are paid very little for the primary commodities they produce. The commodities are taken over by middle men and large multinational corporations end up benefiting from the prices paid in the developed world for the processed goods or products. The producers do not benefit from the enormous profits to be made from the sale of their products in the developed world. The Fairtrade movement is about guaranteeing, despite market fluctuations, a fair and consistent price to the primary producers of these goods.

I wish to discuss the issue of trade in general. This debate gives us an opportunity to highlight the fact that the World Trade Organisation at present is developing an international system of trade rules that are blind to many of the issues we are discussing today. The Doha round is supposed to be about recognising the special development needs of developing countries, but the reluctance of the developing countries to conclude that round suggests they are not happy with what the developed world is trying to convince them is a good deal for their countries. Although I accept the sincerity of Senator Quinn's remarks, I am not sure I agree with him with regard to the supposed rationale for the attempt to bring developing countries into the world trade system and increase their export markets and so forth. The World Trade Organisation and the free trade agreements that are negotiated within that organisation do not always recognise that there are differing levels of development between the developed and developing world and that we cannot consider developing countries as being in a position to compete on equal terms with the developed world. Unfortunately, little special provision is made or few special conditions are allowed for developing countries in the way the trade agreements are hammered out.

There appears to be an attitude that if developing countries develop their export markets and get access to markets in the developed world, it will create more prosperity. In fact, many developing countries are at subsistence level in terms of agricultural production and are incapable in many instances of producing for the export market, and if they are it is at the expense of their home market and feeding their own population. The issue is far more complex than just opening up markets. Often, the European Union and the United States are at the World Trade Organisation seeking, above all, market access to the developing countries. They see them as greenfield markets of consumers where they can peddle their products and create new demand for them. Many of the markets in the developed world are saturated with these products and they are no longer in demand. There is a certain amount of cynicism, so we should examine carefully the rhetoric of free trade and the concept that simply removing barriers to free trade will somehow cause all boats to rise. I do not believe that is the case. Special and differential trade rules are required for developing countries based on their particular levels of development, but these different levels of development are not generally recognised in the trade agreements concluded in the World Trade Organisation.

Like other Senators, I welcome the Fairtrade movement and its objectives which are to make trade more ethical and fair and to ensure everyone benefits in all parts of the world, not just the developed world which is at a competitive advantage in terms of negotiating power, penetrating markets and selling products. I hope Ireland will play its part in discussions within the Council of Ministers on trade agreements. The way trade policy has developed at European Union level has been most unsatisfactory to date. It has lacked transparency and the European Parliament, until now, has had little or no input into decision making on, or the content of, trade agreements. I ask the Minister to use his good offices in the discussions taking place in the Council of Ministers to raise these issues and to ensure the developing world gets a fairer deal.

Mary White (Fianna Fail)
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I compliment the Minister, Deputy Michael Kitt, on the tremendous endeavours he is applying to his job as Minister of State with responsibility for overseas development. He is the right man for the job because he has tremendous empathy for people, as I have said previously. Everyone is aware that the principle of Fairtrade is to support the producers of raw materials such as cotton, coffee, cocoa beans, fruit and bananas. As Senator Norris said, these products are grown in former English, French and Spanish colonies that generated wealth for those countries through the use of slave labour.

The Fairtrade organisation was set up to ensure local farmers receive a fair price for their produce. This invariably means that Fairtrade raw materials extract a premium over non-Fairtrade material. In the case of Fairtrade chocolate, for example, there is a premium of 50% per tonne over normal chocolate, that is, producers get 50% more. In the past 12 months questions have been asked in the international media whether all the premium pricing built into the ingredients is being passed on to producers. However, in principle, Fairtrade is an excellent idea and has enjoyed huge support in the UK and Ireland through satisfying consumers' needs to do something tangible for emerging nations.

Fairtrade producers can set aside funds for community projects such as schools, clinics, training, improvement in the quality of product, sustainable production and providing a decent standard of living for the people who work for the Fairtrade producers so their children can be educated. Education is the stepping stone to developing one's potential and leading a full life. The benefits of Fairtrade are not reaching all Fairtrade farmers because there is insufficient demand for their crops. No one else today has pointed that out. Producers sell an average of 20% of the crop at Fairtrade terms, selling the rest through the world market at far lower prices. Fairtrade is an ideal, inspirational product issue for young people who can encourage the shops, businesses, restaurants and coffee shops in their areas to sell and use Fairtrade products and the universities and colleges to ask their suppliers and service providers to use Fairtrade goods.

It is a source of great pleasure for everyone in Ireland that Dublin has been awarded the title "Fairtrade Capital City" following a two-year campaign to attain the coveted status. The Irish Fairtrade Association presented Dublin's Lord Mayor, Mr. Paddy Bourke, with a plaque to mark the event at a ceremony in Dublin City Hall in recognition of the city's efforts to encourage the public to buy Fairtrade products. Council staff, retailers, schools and universities joined the campaign to help Dublin achieve the coveted status and approximately 120 shops and 60 catering outlets across the capital have signed up to sell Fairtrade products. Dublin has become the latest European capital, along with the likes of Rome and Edinburgh, to support the growing worldwide movement, which is a form of marketing that promotes the payment of a fair price for products from developing countries in a bid to fight poverty and inequality.

As the Lord Mayor of Dublin, Councillor Paddy Bourke, said, "Irish people are a very generous people by nature." The Minister of State knows that the various fund-raising campaigns for fighting famine and poverty in Africa have been generously supported by Irish people. They are unique in the world in that regard.

As Mr. Peter Gaynor, director of Fairtrade Mark Ireland, said recently:

Everyone knows Fairtrade makes a difference. It doesn't change the world on its own but it contributes to real and lasting improvements in the lives of hundreds of thousands of Third World producers.

The Co-Op supermarket chain in the United Kingdom, which was once the largest retailer of Fairtrade branded products, plans to switch all of its own-brand teas to Fairtrade and to stop selling eggs from caged hens as it tries to reclaim its position as the country's leading ethical supermarket chain. The Co-Op began stocking Fairtrade products a decade ago. British sales of Fairtrade goods are now running at £400 million annually, an increase from £290 million in 2006. There is now intense rivalry between Marks and Spencer, Tesco and Sainsbury to surpass the Co-Op in Fairtrade sales. Marks and Spencer has set itself the goal of becoming Britain's greenest retailer by 2012. It only stocks Fairtrade coffee and tea and claims to buy one third of the world's Fairtrade cotton. Tesco offers the largest range of Fairtrade products, with 140 lines, including mangoes, basmati rice and honey.

My company, Lir Chocolates, supplies the Co-Op supermarket chain in the United Kingdom with many of its high-end premium chocolate offerings, made from Fairtrade products. We had to satisfy the Fairtrade authorisation requirements in the United Kingdom to source our Fairtrade ingredients, such as chocolate, coffee, strawberry and caramel flavours, and so forth. It was my pleasure to participate in this discussion today.

Dominic Hannigan (Labour)
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I welcome the Minister of State to the House. World poverty and disadvantage is still one of the leading concerns in the world today. We are seeing an ever-widening gap between the rich northern hemisphere and the poor southern hemisphere, with many children born into the deepest levels of poverty imaginable. As a result, we see efforts by right-meaning people to try to narrow the wealth gap. In Ireland, we are pushing towards the goal of spending 0.7% of gross domestic product on overseas aid. We also see initiatives such as Fairtrade to try to assist local economies in the developing world.

Coffee production, to which other Senators referred, is one of the largest industries in the world. As demand for coffee has increased, so too has supply, leading to rock-bottom prices for coffee growers, many of whom can no longer make a living producing coffee. Fairtrade came along and created an opportunity for these producers who would otherwise be economically dead in the water. It enables them to develop a certain amount of market independence, allowing them to improve their farms and other assets and to diversify into other areas. The fair price paid for their produce covers the cost of production, ensures fair pay and conditions for individual workers and brings benefits to local facilities such as schools, health centres and so forth. Fairtrade also ensures the participation of women in the production process is adequately and properly rewarded.

The Fairtrade initiative has struck a chord with people across the world because, put simply, it makes sense. As a result, the market for Fairtrade products has grown enormously. In 2006, consumers around the world purchased €1.6 billion of Fairtrade products, representing a 42% increase on 2005. In Ireland in 2005 the retail value of Fairtrade products was €6.5 million. By the following year, that had almost doubled to €11.5 million. Last year, the figure almost doubled again, with Fairtrade sales reaching €20 million. Currently, the sale of Fairtrade products is growing rapidly across the world and in Ireland in particular. Combined with Irish increases in the level of overseas development aid, these figures demonstrate Irish people's willingness to try to counter the massive global poverty epidemic. They are choosing to make ethical purchases so as not to make matters worse.

The genius of the Fairtrade initiative is that it poses a simple ethical question to consumers in supermarkets, namely, "Am I part of the problem or part of the solution?" It enables people to lift themselves directly out of the cycle of keeping Third World farmers and producers in a thick web of poverty.

It must be noted that there are some concerns about the Fairtrade initiative. I have read complaints that Fairtrade seeks to create an artificial market price that will lead to dangerous market conditions. The concern is that if Fairtrade leads to an increased supply of tea, for example, the excess supply will lead to lower prices in the non-Fairtrade market which will then require a market correction. However, Fairtrade itself is the market correction we are seeking. The Fairtrade labelling organisation has asserted that farmers can only receive Fairtrade prices if they find a buyer willing to pay them. Furthermore, studies have shown that farmers use the additional income to improve their living conditions and the education of their children. They do not use the additional income to increase the production of crops. I have also read case studies comparing Fairtrade and non-Fairtrade farmers which show the former were more successful in diversifying their produce. Those in Fairtrade deals also saw a significant drop in child mortality, improvements in the food consumption of their households and received a better price for their crops.

Fairtrade is proven to work. In Ireland it has been very successful. We see the ethical choice being passed back to consumers who are reacting accordingly. There are already 30 Fairtrade towns in Ireland, with a further 30 actively seeking Fairtrade status. Dublin is now a Fairtrade capital, thanks to people like the Lord Mayor, Councillor Paddy Bourke, and Councillor Eric Byrne. The latter, in particular, has been working towards achieving Fairtrade status for the past few years. There is now a Fairtrade schools pack which details a syllabus for junior certificate students and uses the civics course for what it should be used for, namely, to enlighten young people about the world and provide them with an active opportunity to become part of the solution rather than part of the problem.

Ann Ormonde (Fianna Fail)
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I welcome the Minister of State and thank him for his statement on this very fine initiative, Fairtrade. I had no real understanding of what Fairtrade was about. I had an idea that it was something to do with the Third World but I did not know anything beyond that. Now we are in the middle of Fairtrade fortnight and in Leinster House we have switched the bulk of tea and coffee supplies to Fairtrade products. That is an excellent example for us to be setting. This is the message we should be projecting, that every individual consumer has to do it in his or her own way and the best way to do it is to buy the products.

Having examined the issue further, I have found out that the idea behind Fairtrade is to give an agreed price to the farmers and producers in underdeveloped countries as well as a premium. This extra money is used for developments in education and health through community projects. Everyone must agree with that principle.

The Minister for Foreign Affairs is very committed to examining how best to assist those in poverty. The Irish Aid programme has become a major force in many developing countries. It knows because it is working in the field to help upgrade vulnerable farmers that may be pushed aside by large producers. The global aspect to this matter is evident in the fact that the Irish Congress of Trade Unions, along with international unions, is taking up the initiative to ensure workers are not exploited in these countries.

People who choose to buy Fairtrade products, such as tea, coffee, coca, sugar and so on, will play a vital role in alleviating poverty and supporting producers in a manner that promotes dignity and self sufficiency. I was delighted to hear there are now 25 Fairtrade towns and cities in Ireland but I had not previously heard that, for example, the cities of Waterford and Dublin had been designated as such. The area of public awareness is where we are failing on this issue.

I spoke to a school's career guidance counsellor and asked whether this issue was discussed in civic education. She said it was not but that it should be. Are Fairtrade products in staff rooms? Are they available in every public organisation and every walk of life? My thinking has gone full circle and I now believe the approach to be taken must come from the bottom up. If this matter is not approached as a societal issue nothing will happen. We could discuss this subject until doomsday but nobody outside these walls would listen. I wonder who is listening to us at the moment, apart from those of us in this room? I do not like this because this is a serious matter and I feel everyone's opinion on it should be heard.

The Celtic tiger is roaring and we have so much money we do not know what to do with it but we should think of those in underdeveloped countries. I spent a month in South Africa and saw the difference Irish aid can make to people in need of education projects, health facilities and so on. Fairtrade gives us another opportunity to help as Ireland has always been good at helping and the Ireland of today helps people when necessary.

How should we promote this concept throughout Ireland and what criteria apply to making a town a Fairtrade town? To qualify as a Fairtrade town, the local council must pass a resolution in support of Fairtrade and agree to serve Fairtrade products. Has every council and local authority in Ireland promoted Fairtrade? I am sure they would welcome Fairtrade products but I am not sure if they currently promote them. I visited my local authority recently but did not drink Fairtrade coffee there. In addition, to qualify as a Fairtrade town, a range of Fairtrade products must be available in local shops. Why not have a sample of them, even in small shops? I have not seen these products in my local shop and the staff there did not know what I was talking about when I mentioned them. I am saying many things that the Minister of State might prefer I did not say. Fairtrade is beginning to make an impact in workplaces and some, but not all, community organisations.

In terms of media coverage, is anything being done to attract support for the campaign? A local steering committee should be set up in all large organisations to promote Fairtrade. Civic education in schools provides a golden opportunity for the promotion of Fairtrade and would help reach out to parents and the wider community.

I want this campaign to be highlighted and to raise awareness. Everyone here knows the purpose of Fairtrade and I am repeating what they have said today but it is important that those outside this House know about it. Until we interact with Irish citizens we will fail in communicating our message on the importance of the Fairtrade initiative and this fortnight. A knowledge of Fairtrade should be spread to all walks of life.

Nicky McFadden (Fine Gael)
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I wish to share time with Senator Bradford.

Paddy Burke (Fine Gael)
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Is that agreed? Agreed.

Nicky McFadden (Fine Gael)
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I am honoured to speak on this matter during Fairtrade Fortnight and I commend the Minister of State on the graciousness and compassion he showed the delegation at the launch of Fairtrade Fortnight. The Fairtrade movement began in Ireland in 1992 to promote justice in trade between Irish consumers and workers and producers in developing countries. I like the theme of Fairtrade Fortnight: "Change today, choose Fairtrade". This matter is a question of choice and by making simple choices Irish consumers can make a long and lasting difference to the lives of producers in the developing world.

I agree with most of Senator Quinn's sentiments and his preference for trade before aid. The people of the developing world do not need our platitudes, they need us to support them and allow them be competitive by buying their products. We should help them to help themselves. Like other Senators, I wholeheartedly welcome the announcement that the restaurants in the Houses of the Oireachtas are to switch to Fairtrade tea and coffee because this commitment signals the all-party support that exists for the movement.

Dublin has joined Edinburgh and Rome as a Fairtrade city and this is not due solely to city councillors; the dedication and commitment of small Fairtrade committees around the country have helped towns and cities in achieving this designation. They debate Fairtrade late into the night and this has helped bring Fairtrade to fruition in Ireland. I was a member of such a committee and I commend the people involved. My local authority, Athlone Town Council, embraced Fairtrade and, on the passing of a motion placed before the council, Athlone became a Fairtrade town.

Fairtrade creates the potential for very good community projects with members of Fairtrade committees visiting local schools, shops and businesses. Athlone Institute of Technology, one of the biggest employers in the region, became the flagship for the initiative in my area. Fairtrade towns must have a flagship. This was a great way of promoting Fairtrade in Athlone and I urge other towns to get involved in such a positive community project.

Other speakers have referred to retail outlets and Marks & Spencer, Tesco, Superquinn, Super Valu and others have dramatically increased the number of Fairtrade products available in their stores. Senator Butler mentioned that Lidl now supplies organic Fairtrade bananas and this has quadrupled the sale of Fairtrade products in Lidl stores. Consumers now realise there is choice because there are so many products and the quality is so much better than five years ago. As other speakers said, this is evident in the sales of Fairtrade products in Ireland.

Working with Fairtrade can provide farmers in the developing world with the opportunity to diversify by making resources available to invest in new products, such as citrus fruits, bananas and cotton. One of my Fine Gael colleagues is wearing a Fairtrade shirt today, which I commend. It is about individuals making choices.

Rice and wine are products that are now being traded fairly. This is taking away the dependency, as Senator Hannigan said, from coffee and increasing the incomes of Fairtrade producers in the developing world.

In some instances Fairtrade sales have provided for co-operatives to buy land and build factories. This will add further to their share of profits from the produce. Other coffee producers are branching into the growing of macadamia nuts, which I commend, and setting up tourism projects. Tea farmers in Sri Lanka are starting to grow spices. This has all come about because small producers have been given the support and funding to diversify by working with Fairtrade. It is about empowering people from the developing world to give them independence and freedom. I commend all the Fairtrade towns and cities in Ireland for taking up this mantle.

Paul Bradford (Fine Gael)
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I welcome the Minister of State to the House. I am aware of his genuine personal commitment not only to the issue of Fairtrade but also the broader issue of development co-operation and the success of the Irish Aid programme worldwide. He has played a key role in that concept in both Houses during the past 20 years or so and it is very much at the centre of his political thinking.

When we speak about fair trade, which we all support, I like to discuss it in the broader concept of world trade, world development and our role in attempting to help develop the Third World. The work of Irish Aid in that regard has been a monumental success. It would be great if trade alone would solve the problem but there has to be support at the lowest possible level — direct financial aid and support — and Irish Aid plays a major role in that regard.

Over the years, through various parliamentary visits, I have been to places such as Malawi, Lesotho and Zambia. When one sees at first hand, on one side of the equation, the scale of the abject poverty, the poor governance and the lack of proper political structures and, at the other side of the equation, the work being done by the various charities, aid agencies and Irish Aid, in particular, one realises we are playing a constructive role. In regard to Fairtrade, its major success in recent years has been to engage and inform public opinion. That has been very helpful.

We are having this debate during the Lenten season. The work of Trócaire, in particular, over the past 25 to 30 years has been marvellous, not just from the concept of collecting and distributing money but from the perspective of getting people to reflect on trade, aid, human rights and civil rights worldwide. It is all part of the one equation and the one jigsaw. One cannot solve the problem unless all the pieces are in place.

I mentioned earlier the issue of governance, which may not be the most popular way of looking at the problem. When help is made available, be it through financial resources or grants of any description, it is important it is spent well and wisely. We cannot undersell the concept of good governance. One only has to look at the situation in Zimbabwe to see the disaster that occurs when a country is misgoverned. That is the greatest international tragedy at present. The old country of Rhodesia probably was discussed in this House and elsewhere almost weekly during the 1970s when it was politically necessary and popular to do so. The tragedy is that Zimbabwe does not get the attention it deserves and we need to put it back on the radar.

Senator Quinn spoke about the agriculture side of the equation. It was a continuance of our discussion at the Joint Committee on Agriculture, Fisheries and Food, a fortnight ago, when we had a presentation on a range of issues, including the world trade talks from the Irish Farmers' Association. There was something in the speech of the Minister of State which I thought was interesting and would have a certain resonance in Irish agriculture. He made the point that the prices being paid to farmers must be sufficient to cover their costs, provide them with a decent livelihood and allow enough of a surplus for investment in the future. Of course we agree with that view, but that relates not only to agriculture in the Third World but to agriculture at home.

The World Trade Organisation talks pose a genuine threat to Irish agriculture and Irish jobs. We could easily get carried away with the notion that progress in the WTO talks and progress in pushing through the Peter Mandelson formula somehow would be beneficial to the Third World. I say to my colleagues in the House that we have seen only one example of WTO policy imposed on this country, namely, the decision to close the Irish sugar industry. We were told its closure and the general slowdown of the sugar industry in Europe would be good for the Third World, that somehow the poorest of the poor in Africa would benefit from commercial decisions taken in Europe. What has happened is that a tiny number of growers in South America, in Brazil in particular, have benefited. Irish agriculture, Irish farmers and the Irish economy have lost one of our oldest natural industries but very few have benefited and certainly not the poorest of the poor.

The issue of trade, aid and so on relates to another debate we are having on genetically modified foods and feedstuffs. We sometimes portray ourselves as speaking from some high moral plateau. There is a prospect of the development of many new seed varieties which could transform agriculture and give real hope in parts of Africa which suffers continually from drought and the inability to grow crops. However, we in the EU are saying what can and cannot be done and what type of genetic modification can or cannot take place. We have no right to block the possible production of seed varieties which might well be a solution to some of the dreadful famines being endured by people in parts of Africa.

Unfortunately, I have drifted well beyond the issue of fair trade but it is all part of the equation. We all support Fairtrade. It is not the total answer by any means but it is certainly a help. We welcome and support all the Fairtrade towns but we also have to keep our eye on other parts of the same equation — the politics, the governance, the need to spread democracy, the need to help communities through direct grant aid and so on.

I congratulate the Minister of State, especially on the work being done by Irish Aid and the Government's commitment to increase funding to the Third World, which we have debated many times. At least we are increasing our national spend on aid and development, something I support very much. I hope we utilise it to the best advantage because the people of the Third World certainly need our continuing support. Fair trade is part of it but is not the whole equation.

Terry Leyden (Fianna Fail)
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I welcome the Minister of State, Deputy Michael P. Kitt, to the House. Nobody is better equipped to be Minister of State with responsibility for overseas development than the Deputy. As the outgoing Chairman of the sub-committee of the Committee on Foreign Affairs concerned with overseas development, he has vast knowledge of this particular portfolio and has shown a great commitment to this field. I wish to draw attention to the fact that the Minister of State, along with Deputy Michael D. Higgins, were prepared to go to Iraq on the eve of the war, at enormous risk to themselves, to see if they could do anything to prevent that terrible war that has proved so devastating.

I have read the Minister of State's speech which was well prepared and presented by him. It outlines exactly the concept of Fairtrade. It is an issue in which we in Roscommon have an involvement because a councillor, Orla Leyden, put forward the motion at Roscommon County Council to have the county approved as a Fairtrade county. This has been approved. It achieved the six goals. At least ten businesses in the town must have Fairtrade products for sale and the council must pass a motion in support of Fairtrade. This motion was passed and it is now a Fairtrade town, and there has been a 75% increase in the consumption of Fairtrade products in Roscommon town. I congratulate all the councillors involved as it was a decision of Roscommon County Council that it would become a Fairtrade county. A meeting was held on the issue last night.

Fairtrade brings knowledge, realisation and education to many people on the question of the strength and importance of trade, Fairtrade and Fairtrade products. It gives direct assistance to producers from Third World countries to help ensure they get a fair price for their products. It is said that if one gives people fish, they will survive for so long, but if one gives them a fishing rod and teaches them how to fish, they have a job for life and can sustain their families.

I commend the Minister of State and the Department in this regard. The Minister of State in his contribution noted:

[The allocation of] €8.5 million in support of producers in developing countries and development education work in Ireland. Irish Aid has a long-standing record of support for fair trade producers in Central America. Due to the success of this work, similar programmes of support are being considered for East Africa producers.

This is worthwhile. The Minister of State is also prepared to listen to criticism in this regard. A report by one organisation expressed concerns about certain aspects and the Minister of State referred to its critical report when he stated:

It suggests that Fairtrade benefits a small number of farmers in developing countries and is wrong in principle: it suggests that more free trade is what is needed. It also suggests that the impact of Fairtrade is less than it claims for itself.

Professor Frank Barry, professor of international development and business at Trinity College Dublin, states:

By seeking to influence the behaviour of consumers, the [Fairtrade] movement harnesses that most powerful instrument — the market mechanism — to affect economic outcomes by strengthening the hand of impoverished developing-country producers.

That is worthwhile. I know the Minister of State considered all of these aspects.

The concept of fair trade is a good one. Unfortunately, areas such as the Gaza Strip cannot export their products, fair trade or otherwise. Gaza is totally cut off from its export markets. I ask the Minister of State and the Department to take a particular interest in this region. The people of Palestine have been suppressed economically because they cannot get their products to the markets. There is now no port servicing the Gaza Strip, although it is on the coast, or an airport through which products could be transported to the markets. These are the issues that should and, I know, do affect the Minister of State in his work on overseas development.

Fairtrade has a bearing on the Minister of State's overall portfolio, although it is only a part of it. Volunteering is one area of development the Minister of State is keen to progress. The idea of the United States Peace Corps, which operated during the Kennedy era, was very worthwhile. As I have discussed with the Minister of State, a great number of people are available. Through this debate, I wish to promote the concept of people making themselves available at short notice to go on voluntary projects when there is hardship in particular regions, whether as a result of a hurricane, volcano, earthquake or other natural disaster. I commend the fact we will have at our disposal well-qualified people who are prepared to spend three or four months working with the regional authorities in affected areas.

I commend the Minister of State for his support of the Niall Mellon fund. I heard the Minister of State on radio refer to the fact Niall Mellon put forward a proposal to him on his work in South Africa. I hope Mr. Mellon will extend his work to areas such as Kenya. I visited Nairobi two years ago. It is devastating to see the shanty towns in places like Nairobi, where hundreds of thousands of people live in the most appalling conditions. If we can assist through projects such as Niall Mellon's or others, great work would be done.

If the Minister of State encouraged RTE or TV3 to bring a journalist and television crew with him on his visits, while this might be criticised for promoting the Minister of State — I do not believe it will be — it would also promote and support the work he and all the overseas development agencies are doing in developing countries. We can see the response to the recent television production on the Niall Mellon fund. More people are volunteering because it showed the effect of the work he is doing with the thousands of volunteers who go to South Africa every autumn to build thousands of houses. The more we promote this, the better.

I encourage the Minister of State, as I did his predecessors, Deputies Tom Kitt and Conor Lenihan, to support Oireachtas Members in accompanying some of his missions to developing countries. Oireachtas Members can get the word through and the cost of such trips is minimal compared to the percentage spent on development and world aid. Oireachtas Members are prepared to go on such visits because they realise the value of this work. When I visited Kenya, I went with UNESCO to the northern region when it was suffering severe drought. This meant I could at least bring that message back to the Oireachtas and other fora to highlight the situation as well as the situation I witnessed in Nairobi, which I would never have known of had I not been there as part of an inter-parliamentary group. I would encourage Oireachtas Members to make such visits and I would stand over the decision of any Member who was prepared to visit these regions with the Minister of State or his team.

The Minister of State should keep up his excellent work. He has followed in the shoes of the Ministers of State, his brother Deputy Tom Kitt and Deputy Conor Lenihan, who have also served in his current role. It is a vital ministry, which has significance in world terms as the lives of many people depend on our commitment and investment in those regions. I wish the Minister of State continued success in the Department.

Joe O'Toole (Independent)
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I welcome the Minister of State and congratulate him on his good work in drawing attention to various aspects of Third World development and his openness to meeting various groups. It is very encouraging to many of us who are involved in various Third World and developing world initiatives and related matters that the Minister of State makes himself available to meet people and tries to see exactly how the system is working.

I have the view that if we could apply the Treaty of Rome to the world, we could solve much poverty overnight. In other words, if we could do for the world what Europe did for Ireland by having free movement of labour and goods, this in effect would sort out many of our problems. The major problem relates to trade. People in the Third World can produce but they do not have the opportunity to export their goods for sale in the developed world. Moreover, they must deal with the problem of dumping in their own countries. Countries in the west can produce cheaply and dump the goods abroad if they cannot sell them at home, which is also an important issue.

There is much artificiality with regard to prices. In a form of reverse psychology, if one allowed the market to do its own thing European farmers would be entitled at present to sell abroad because there is a shortage of food in the world. We need to deal with a number of issues and in particular we need to open up trade. This is why Fairtrade is important. We know when buying a Fairtrade product that we are supporting a real initiative on the ground and that the people who produced the product we are eating or using have been paid properly, dealt with properly and have rights.

Is not the real issue of fair trade that human and civil rights are inextricably linked? It was appalling to hear another report from China this morning about a plan to set up yet another flooded area in the southern part of the country which will drive people out of their homes and farms. No permission is required and the Government will not even compensate people nor give them land instead. In addition, the local media is not allowed to report on the matter or discuss it.

Fairtrade brings education in terms of how we allow people and train people to improve themselves. That is something we should examine. Fair trade is part of the work voluntary groups do in the developing world. They show people how to use the land, how to understand agriculture and horticulture and how to fish.

The Minister of State, Deputy Michael Kitt, is younger than I but he may recall one of the first slogans used by Trócaire about it being better to teach people how to fish than to give them fish. This is part of the same thing. Instead of simply giving charity we are involved in trade and in giving people an opportunity to express themselves and to develop. We can help people by allowing them to participate in the world of trade. In that sense, each one of the groups to which the Minister of State referred has made an extraordinary contribution. I have been involved with a number of them, especially the ICTU but Comhlámh and others also. They have been working assiduously, quietly and with extraordinary energy and commitment over the years.

I return to the issue of education and how we can train people and give them every opportunity. If we can ensure that the new generation in the Third World are healthy and educated they will find their way. As part of the Fairtrade initiative we should bring people to Ireland where they can learn about the principles of agriculture. I do not suggest that they should learn to till the fields and do Irish dancing but they should attend agricultural colleges and horticultural colleges and learn about farm management and the appropriate skills they need to bring back to their countries and to learn the theory behind the application of agriculture.

I thank the Cathaoirleach for the opportunity to speak for a few minutes. I welcome the Minister of State, Deputy Michael Kitt, and congratulate him on the work he is doing. This House supports strongly the Fairtrade mark and all that it is achieving. We also congratulate the people involved on the great work they are doing.

Michael Kitt (Galway East, Fianna Fail)
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I thank Senators for their welcome comments and statements on Fairtrade. I refer to the White Paper on Irish Aid which states that we will "increase our financial support for initiatives which promote fair and ethical trade." That sums up many of the issues I raised and that were raised by Senators today. I reaffirm the commitment to support the expansion of Fairtrade throughout Ireland and to support poor farmers' access to Fairtrade certified markets, especially in Ireland.

Irish Aid is one of the largest donors to Fairtrade in the world. We will motivate other donors to continue to support producers in the poorest countries of the world. Building on the success of Irish Aid's support to the Fairtrade Network, we will continue to support development education, Fairtrade Fortnight, which is on at present, and Fairtrade towns.

Senator Cummins referred to the increase in Fairtrade sales. He referred in particular to business people from Nepal. I will make contact with the people whom he mentioned when they visit Ireland in the middle of April. I am pleased to do that. Senator Butler spoke about how the Oireachtas bars and restaurants now stock Fairtrade products. He is proud of the fact that Dublin is a Fairtrade capital.

Senator Quinn made some interesting comments on his experience of dealing with Fairtrade products as a businessman. He also referred to the Doha talks where Europe tried to keep out products from the developing world. He outlined that farmers need to make even a small profit in order to invest in the future. That is true of all farmers. Senator Norris spoke about slave labour and gender equality. I fully support his comments on those issues. Senator Mullen said we were talking about a good news story where sales of Fairtrade products had grown by 75%. He mentioned that NUI Maynooth was the first Fairtrade university.

Comments from Senator de Búrca on the Fairtrade movement were also very positive. She spoke about the need for a fair price to be paid to producers and welcomed trade agreements. Senator Mary White outlined her personal experience of growing products involved in the production of chocolate. She also referred to the very important role of young people. A number of schemes are in place such as the global schools awards and Fairtrade projects for schools. In some cases transition year students can travel to developing countries.

Senator Hannigan referred to the great support of Irish people for Fairtrade products and the gap between rich and poor. He also referred to the ethical questions that have to be asked in regard to these products. Senator Ormonde spoke about the role of local authorities and media coverage. She is correct. We should promote this area more. The work of schools is important. I support what she said.

Senator McFadden referred to the importance of towns promoting Fairtrade goods. Other Senators also mentioned this. Senator Bradford spoke about his experience of visiting developing countries. He referred to Zimbabwe in particular and said the situation there was not getting enough media attention. He has raised the issue here and I hope it will get more attention. He also praised Trócaire for its various Lenten campaigns on trade and aid. The current campaign, which is also a very good one, relates to climate change. He referred to the sugar industry and the fact that we also need to consider GM foods and not to dismiss the proposals in that regard.

I congratulate Senator Leyden on his contribution. He referred to the fact that Roscommon County Council has proposed Roscommon as a Fairtrade county. I congratulate Councillor Orla Leyden who proposed the motion and all her colleagues who unanimously agreed it. He referred to visits to developing countries by Oireachtas Members, which is something I have promoted. I wrote to the Chairman of the Joint Committee on Foreign Affairs about the matter.

Senator O'Toole referred to the Treaty of Rome and the need to open trade. I am pleased that he referred to the Irish Congress of Trade Unions because it is one of the important bodies that has promoted the issue of fair trade. He was correct in saying that education is one way of helping people to improve their lives. It is a basic right that should be available to people in developing countries.

We support the Irish Fairtrade Network. We have approved grants of more than €8.5 million. We will continue to work with the Irish Fairtrade Network to support producers in developing countries. I reaffirm the Government's commitment, which is in the programme for Government, to ensure that the sourcing of Fairtrade goods, where possible, is part of the purchasing policy of all Departments.

I thank all the Senators who contributed and I hope we will have another opportunity to discuss issues that help the lives of people in the developing world.