Enda Kenny (Mayo, Fine Gael)
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Question 19: To ask the Minister for Agriculture, Fisheries and Food the action being taken to address the imbalance in the food chain to ensure both producers and consumers have access to fair prices; and if he will make a statement on the matter. [45289/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The issue of the need for balance in the food supply chain is being addressed in a number of arenas. At national level the Renewed Programme for Government contains a commitment to "implement a Code of Practice for doing business in the Grocery Goods sector to develop a fair trading relationship between retailers and their suppliers" and "to review progress of the Code and if necessary to put in place a mandatory code". It is planned to do this by including a provision to allow for the introduction of a statutory Code of Conduct in the grocery goods sector in legislation being prepared by the Minister for Enterprise, Trade and Innovation, Batt O'Keeffe TD on merging the National Consumer Agency and the Competition Authority. I understand that Minister O'Keeffe expects to publish this legislation early in 2011.

In the meantime, pending enactment of legislation, the opportunity is being taken to explore with stakeholders the possibilities of agreeing a Voluntary Code and Minister O'Keeffe has appointed John Travers to facilitate discussions with stakeholders. It is expected that the facilitator will report to the Minister in the coming weeks. My Department and the Department for Enterprise, Trade and Innovation will continue to consult closely on this issue.

At European level, I am on record and have spoken many times at the Council of Agriculture Ministers of some weaknesses that have emerged in the food supply chain. I have emphasised the importance of ensuring the security of safe, high quality and sustainably produced food – at reasonable prices for our consumers, and with corresponding reasonable returns to our farmers and processors. This requires that we have viable, competitive and balanced food production and distribution systems.

At EU level the Commission has established a High Level Forum for a Better Functioning of the Food Supply Chain to assist it with the development of industrial policy in the agro-food sector. The mandate of the Forum, which is for a period of two years, is to advance the recommendations of the High Level Group on the Competitiveness of the Agro-Food Industry established by Commission Decision 2008/359/EC, and the initiatives proposed by the Commission in its Communication 'A better functioning food supply chain in Europe' to improve the competitiveness of the agro-food sector notably of SMEs and to foster innovation and exports.

The Forum is chaired by Vice-President Tajani and includes among its members Ministers from 13 Member States including Ireland, companies and trade associations of the agriculture, food and commerce sectors and non-governmental organisations. The Commissioners for Internal Market and Services, Health and Consumer Protection and Agriculture and Rural Development also take part.

The first meeting of the Forum in November approved a programme of work for Platform groups on technical examination of issues. Members were asked to indicate their priorities and Ireland highlighted the consideration of the establishment of Codes of Conduct in relation to business to business relationships, given that this issue is becoming more acute with the increasing consolidation of the retail sector in all Member States. Ireland also mentioned the development of effective ways of dealing with price volatility and risk, the necessity of ensuring a reliable supply of raw materials from a viable and sustainable agriculture sector, and developing ways of encouraging and enhancing competitiveness and innovation in the food industry and at farm level. These priorities were broadly shared though the perspective of trade associations from different parts of the food supply chain varied.

As over 80% of Irish food and drink is exported we have a strong interest in contributing to the development of coherent measures at EU as well as national levels.