Seanad debates

Wednesday, 28 May 2025

Nithe i dtosach suíonna - Commencement Matters

Food Industry

2:00 am

Dee Ryan (Fianna Fail)
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I welcome the Minister for Agriculture, Food and the Marine, Deputy Heydon, to the Chamber, and thank him for his time.

Photo of Victor BoyhanVictor Boyhan (Independent)
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The Minister is welcome. Before I kick off, I wish him and his colleagues in Bord Bia every success this week for Bloom. I was out there the other day having a look, and tomorrow they kick off with that. I thank the Minister for his collaboration with Bord Bia and hope it will be a fantastic and successful event.

Today, I am speaking on and pursuing a call by the IFA president, Mr. Francie Gorman, who has called for the Minister to grant additional powers to the Agri-Food Regulator. The IFA says these powers are needed so that the Agri-Food Regulator can compel businesses in the agri-food supply chain to provide price and marketing information when requested. The office of the Agri-Food Regulator, as the Minister knows, has overall responsibility for the enforcement of the unfair trading practices, UTP, directive. The regulator also has an important role to play with regard to analysing the market, the data and the price transparency regime.

The IFA is calling on the Minister to grant the regulator additional powers, and it makes a very strong case. The Minister will be aware of a recent press release it issued where it said this is essential to beef up the powers and functions of the regulator and to deal with issues around compliance with the regulator. The IFA says it is aware of a number of large retailers that did not provide information to the Agri-Food Regulator when asked. I am aware of some of those suggested people who did not involve themselves but it is not appropriate for me to put that on the floor of the House because due process must prevail. The Minister will appreciate that himself.

The Minister and his Department are aware of the IFA's assertions. They are serious and critical. We must instil transparency and confidence in the regulator, as was envisaged in the legislation. It is important that they be investigated. The regulator should be in a position to produce - the Minister will agree with this, as it was the backbone of the legislation - the price and market reports of the sector with respect to the food supply chain.

I ask the Minister to comment on the additional powers. The food regulator must carry out its functions. There must be reliable and verifiable sources of information it can stand over, so data is critical with regard to analysing the supply chain and the engagement and collaboration of all sides. The point about all sides is important. I know IBEC has concerns, and we must look at the concerns of everyone in the sector, but the regulator is also required to publish the regulatory analysis and the reports, as I said. That is important. Transparency is important throughout the food chain. The Minister will often come across the suggestion of over-regulatory burden. It is a phrase that is used a lot. I am not in the business of over-regulation but if the food regulator is to carry out its functions it must have the right to compel all information that is accurate and verifiable. That is the request. The Minister will have had time to consider it - he may need more time to consider it - but the IFA has made a call and expressed concerns. We need to examine them because everybody must benefit from the legislation in terms of the regulator. It is about confidence in the sector, but it is about fairness too. It is about accuracy and due process. We must take on board IBEC's concerns but we must also respond to what is a call now by the IFA and others to give additional regulatory powers to the regulator. Ultimately that is a matter for the Minister. He may decide to bring in amendments to legislation or to introduce primary legislation. I would be interested to hear his view on that.

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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I thank the Senator for raising this important matter. I will pass on his good wishes to Bord Bia. I look forward to meeting him at Bloom on Thursday evening and to the fantastic bank holiday ahead. A huge number of people have put an awful lot of work in there. It is a great opportunity for us to showcase the best in our food and horticulture sector and beyond. It is something that people take great pride in and put huge work into. It will be a positive weekend. I encourage everyone to go along to Bloom this weekend.

As the Senator is aware from his involvement in the pre-legislative scrutiny of the Bill that established Ireland’s first independent Agri-Food Regulator, the regulator performs two key functions. It enforces the law on unfair trading practices, UTP, and it performs a price and market analysis and reporting function. It is that second function we are discussing today. Section 12 of the Agricultural and Food Supply Chain Act 2023 requires the regulator to publish analysis of information about price and market data relating to the agricultural and food supply chain. Currently, in respect of that function, the Act provides that the regulator may "seek from businesses ... any data impacting upon price and margins considered necessary". Such data sought by the regulator includes but is not limited to the items listed in the legislation. I wish to emphasise that this price and market function is separate and distinct from the regulator’s function to enforce the law on UTP. The regulator has extensive powers to obtain data from businesses in the course of UTP investigations. It is appropriate to mention at this juncture that the regulator has already had a successful prosecution for a UTP breach.

On the price and market analysis function, over the last year the regulator has published welcome analysis on two sectors: the egg and horticulture sectors. Such reports are important to assist food suppliers in their decision-making. While there has been much positive engagement with the regulator from operators who have responded to requests for data, there were a few operators who did not provide the requested data. The two reports were as a result published using publicly available data. In light of its experience concerning those reports, the regulator has reported to me that it requires enhanced powers to compel businesses to provide financial information that is not in the public domain. The Act does not permit the regulator to compel such data. However, the Act provides that the Minister may make regulations on price and market information. In addition, the programme for Government commits to giving the Agri-Food Regulator enhanced powers to ensure transparency in the food supply chain with regard to providing market information.

I am fully committed to ensuring that the regulator is equipped with the necessary powers to fulfil its statutory function, subject to the legislative and consultative process. I need to ensure that the powers granted are proportionate. My Department and I are in discussions with the Agri-Food Regulator and other key stakeholders to see how this can be achieved. As part of that process, it is appropriate for me to consider relevant factors before making any such regulations. In particular, I must have regard for the SME test, which is also a programme for Government commitment relating to legislation. I am aware that there is a concern in the business sector. I have met with IBEC and business representatives and heard their concern that compelling Irish agrifood businesses to provide financial data may give rise to competitive advantages for businesses in other EU member states. This is because it may go beyond the current EU requirements. The regulator has advised me that it is fully aware of its responsibilities on protecting information that may be commercially sensitive.

My Department is committed to working with the regulator and stakeholders on this matter. Pending the finalisation of the legislative and consultative process, it remains open to the regulator to seek financial data from businesses and to publish reports on the price and market. I hope the Senator takes on board from the broad response I have given that this is something I am taking seriously. We did not set up the Agri-Food Regulator in order for it not to be able to do its job. We would not be in this position if everybody had provided the information they were required to provide. At the same time, we want to make sure that any intervention or statutory instrument I may bring forward will be proportionate and take due account. The regulator is very much aware of its responsibilities in handling such sensitive information.

Dee Ryan (Fianna Fail)
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Before I bring the Senator back in, I welcome students from Shellybanks Educate Together National School in Sandymount to the Visitors Gallery. They are very welcome. They are here in the Seanad for Commencement Matters. This is where Senators get to pose in-depth and detailed questions to Ministers. Ministers provide longer than usual detailed answers. The Minister, Deputy Heydon, has just provided an answer to Senator Boyhan and the Senator is going to respond.

Photo of Victor BoyhanVictor Boyhan (Independent)
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I also welcome the students from Shellybanks. I know some of the students in the school. It is an amazing school. Well done to all involved in it.

I thank the Minister. He has given a robust response. He has clearly demonstrated that he is listening to the IFA and others. He referenced the engagement with all stakeholders and that is important. Due process must prevail in all these things. He flagged a possible statutory instrument, which is in his remit and function, or additional legislation or amending legislation. In principle, I am going away with the understanding that we need enhanced powers to ensure transparency in the food supply chain. That is necessary. I have no doubt that the Minister is on top of the situation. It is important that we demonstrate our absolute commitment to the role and function of the Agri-Food Regulator as envisaged in the legislation. I thank the Minister for taking time out of his busy schedule to be with us.

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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I thank the Senator again. On his last point, I take my responsibility to both Houses very importantly. I always try to answer the Commencement matters or Topical Issue matters that are put to me or my colleagues within the Department. It is important and I thank the Senator for acknowledging that.

This is novel legislation that would place an onus on business to supply financial data that goes beyond that which is required across the EU. It is not an insignificant ask. I want to ensure that any proposed additional powers are subject to an appropriative legislative process and do not give rise to any unintended consequences. It is our responsibility in both Houses to make sure that we look out for unintended consequences and that when we are trying to fix one problem, we do not create another. We do not want to put an extra burden on business but the Agri-Food Regulator was set up for an important reason. There was a need for it. I wish to repeat that I am fully committed to ensuring the regulator is equipped with the necessary powers to fulfil its statutory function, subject to the legislative and consultative processes. I cannot be any clearer on that. I hope to see clear progress in the near future. As I previously mentioned, this was a commitment in the programme for Government so it should not be a surprise to anybody.