Alan Shatter (Dublin South, Fine Gael)
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Question 61: To ask the Minister for Agriculture, Fisheries and Food his views on reports that retailers are continuing to demand that suppliers pay them for lost profit arising from the pork dioxin recall; and if he will make a statement on the matter. [11971/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The retail sector played a very important role in the actions taken through the supply chain to restore consumer confidence following the dioxin incident. The main priority was to get product back on the shelves with as little discontinuity as possible and the prompt action of the retail trade in this regard contributed greatly to achieving this.

The primary purpose of the contingency fund established by my Department was to remove and render potentially contaminated product. It was intended to provide financial assistance to processors for loss of product and so ensure continuity of supply. My Department has met with retailers to brief them on the scope of the financial assistance approved for EU state aid purposes which does not cover loss of profit at retail level.

I am disappointed at reports of a small number of retailers seeking to charge suppliers for profits lost during the period. My Department does not have a statutory role in relation to what are effectively contractual relationships between retail buyers and their suppliers but has pointed out the extent of the financial assistance scheme and sought the cooperation of all stakeholders in the food chain including the retailers.