8 September 2009
Green Party TD and Minister for Food and Horticulture, Trevor Sargent today addressed the Joint Oireachtas Committee on Enterprise, Trade and Employment. The Committee is examining the issue of whether or not supermarkets are sharing with their customers the price reductions currently being offered for Irish vegetable products.
Commenting on the role of the supermarkets, Minister Sargent said “The responsibilities of the large supermarket chains operating in this country do not and cannot be allowed to stop at consumers and their shareholders. Their responsibilities must also include primary producers, processors and suppliers.”
He went on to share some of the concerns voiced by Irish food producers, saying “I have met and heard from suppliers who are afraid to say publicly what they will say to me privately for fear of being identified and ultimately targeted by the retailers. Many allegations have been made in relation to the requests for ‘hello money’. This is the reason we urgently need the Code of Practice and the appointment of the Retail Ombudsman.”
He outlined some of the support his Department had provided to the food production sector. “The Department of Agriculture, Fisheries and Food has paid out grant aid of some €30m to producers since 2000 under the Scheme of Investment aid for the Development of Commercial Horticulture.”
“In addition, the Capital investment scheme for Marketing & Processing also provided grant aid of some €16m in respect of Horticulture projects. These schemes have been the catalyst for investment and growth and have assisted producers to upgrade and develop new production facilities and improve quality.”
In conclusion, Minister Sargent said “Vegetable and fruit growing is a business that is both capital and labour intensive. Like any business it must make a profit to continue. It is essential that any unfair or illegal practices … are tackled once and for all. I believe that we have made a valuable start in the publication of the consultation documents for the Code of Practice which we must vigorously follow up so that greater certainty and reassurance can be introduced into the relationship between suppliers and the supermarket multiples.”
__________________________________
