Victor Boyhan urges extra powers for Agri-Food Regulator

Thank you very much. Again, you are welcome, Minister. Just before I kick off, I wish you and your colleagues in Board Bia every success this week as Bloom was out there the other day just having a look and tomorrow costs a kick off at that. Just to thank you, but also your collaboration with Board Bia and hope it will be a fantastic and successful event. Minister I am here today speaking really and pursuing a call by the IFA President, Francie Gorman, who has called for you as Minister to grant additional parts to the Agri-Food Regulator. The IFA says these parts 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 you know, has overall responsibility for the enforcement of the UTP's directive. The Regulator also has an important role to play in terms of analysing the market of the data and the price transparency regime. The IFA is calling on you again to grant the Regulator additional powers and they make a very, very strong case. Indeed, you will be aware of a recent press release that they issued and they say that this is definitely required and is essential to beef up the powers and the functions and the compliance issues around compliance with the Regulator. The IFA say that they are aware of a number of large retailers that did not provide information in the Agri-Food Regulator when asked. I am aware of some of them, suggested people that 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 and I think you will appreciate that yourself, Minister. Minister, you and your department are aware of the IFA's assertions. I think they are serious, they are critical. We must instil transparency and confidence in the Regulator as was envisaged in the legislation. So I think it is important that they are investigated. The Regulator should be in a position to produce, and you will agree with this, and it was the backbone of the legislation. The price and the market reports of the sector in terms of the food supply chain. So I would ask you, Minister, maybe just to comment on the additional powers. I suppose just to say that the Food Regulator must carry out its functions and there must be reliable and there must be verifiable sources of information that they can stand over. So data is critical in terms of analysing the supply chain and the engagement and the collaboration of all sides. And it is important to all sides. I know that IBEC have concerns and we must look at the concerns of everyone in relation to the sector. But the Regulator is also required to publish the regulatory analysis and the reports as I have said. I think that is important. I think transparency is important along the entire food chain. I think the thing that you will come across, Minister, a lot is this suggestion of over-low regulatory burden. It is a phrase that is used a lot. And I am not in the business of over-regulation. But if the Food Regulator has to carry out its functions, it must have the right to compel all information that is accurate and verifiable. And I think that is the request. So Minister, you have had time to consider it. You may need more time to consider it. But I think the IFA have made a call and they have expressed concerns. And I think we need to look at them because everyone must benefit from the legislation in terms of the Regulator. It is about confidence in the sector, but it is about fairness too, and it is about accuracy, and it is about due process. And I think we have, of course, to take on board IBEX concerns. But we also must respond to what is a call now by the IFA and others to give additional regulatory powers to the Regulator. But ultimately that is a matter for you. You may decide to bring back amendments to legislation or primary legislation. Again, I would be interested in hearing your view on that. Thanks. Can I start by thanking Senator Ryan for raising this important matter and say to thank you, I will pass on your good wishes to Borbilla. I look forward to meeting you at Bloom on Thursday evening. And what will be a fantastic bank holiday ahead, a huge amount of people put an awful lot of work in there. And it is a great opportunity for us to showcase the best in our food and our horticulture sector and beyond. And it is something that people take great pride in putting huge work into and it will be really a positive weekend. And I encourage everyone to go along to Bloom this weekend. As a senator, you are aware from your involvement in the prelegative scrutiny of this bill that established Ireland's first independent agri-food regulator, the regulator performs two key functions. It enforces the law on unfair trading practices and it performs a price and market analysis and reporting function. It is that second function that we are discussing here today. The price and market analysis and reporting function, section 12 of the Agriculture and Food Supply Chain Act 2023, requires the regulator to publish analysis of information about price and market data relating to the agriculture 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 want to emphasise that this price and market function is separate and distinct from the regulator's function and to enforce the law on unfair trading practices. The regulator has extensive powers to obtain data from businesses in the course of the investigation of UTPs. It is appropriate to mention at this juncture that the regulator has already had a successful prosecution for a breach of an unfair trading practice. On the price and market analysis function, over the last year the regulator has published a welcome analysis on two sectors, the egg and horticulture sectors. Most reports are important to insist food suppliers in their decision making. However, while there has been much positive engagement with the regulator from operators who have responded to requests for data, there are 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 itself 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, and I and my department are in discussion 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 in relation to legislation. I am aware that there is concern in the business sector, and I have met with IBEC and business representatives around those concerns. Around compelling Irish Agri-Food business to provide financial data may give rise to competitive advantages for businesses and other EU member states. This is particularly 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. In conclusion, Senator, my department is committed to working with the regulator and stakeholders on this matter. Pendant the finalisation of the legislation and the consultative process, it remains open to the regulator to seek financial data from businesses and to publish reports on price and market. What I hope you take on board from the broad response I have given there, this is something I am taking really seriously. We did not set up an Agri-Food regulator to not be able to do its job. We would not be in this position if everybody had provided the information that we are required to provide. But at the same time we do want to make sure that any intervention, any statutory instrument that I may bring forward will be proportionate and take due account, and that the regulator is very much aware of their responsibilities in handling such sensitive information. Thank you, Minister and Senator. Before I bring you back in, I would just like to welcome to the visitors gallery the students from Shelley Banks Educate Together School in Sandalemount. You are very welcome. You are here this morning in the Shannon for Commencement Matters. This is where Senators get to pose in-depth and detailed questions to Ministers and Ministers provide longer than usual detailed answers. So, Minister Hayden has just provided an answer to Senator Boyhan and Senator Boyhan is going to respond. Senator. Hello. Thank you. I would also like to welcome the Shelley Banks students. Indeed, I know some of the students in the school. It is an amazing school. So, well done to all involved in it. Minister, I just want to thank you. I think you have given a robust response. You have clearly demonstrated here that you are listening to the IFA and others. I think it is important you said there about the engagement with all stakeholders because I think that is really, really important. Due process must, of course, prevail in all of these things. And you are there flagged possibly an SI, which is in your remission function, or additional legislation, whatever is amending legislation. So in principle, I am going away today with the understanding as Minister that, yes, we do need enhanced powers to ensure transparency in the food supply chain and that is necessary and that you are on top of the situation, I have no doubt. And I think it is important that we demonstrate our absolute commitment to the role and function of the food regulator as envisaged in the legislation. And I want to thank you, taking time out of your busy schedule, to be with us today. Thank you, Senator Boyan again. And just in relation to your last point, I take my responsibility to both houses very, very importantly, and always try and answer commencing matters or top skills that are put to me, either me or my colleagues within the department. I think it is really important. So thank you for acknowledging that. Look, in relation to this, this is a novel piece of legislation that would place an onus on business to supply financial data that goes beyond that which is required across the EU. So it is not an insignificant ask. And I want to ensure that any proposed additional powers are subject to appropriate legislative process and does not give rise to any unintended consequences, which is obviously all of our responsibility in both houses here to make sure that we look out for unintended consequences when we are trying to fix one problem that we do not create another. And we do not want to put an extra burden on business. But at the same time, the Agri-Food Regulator was set up for a very important reason, there was a need for it. And I am fully committed, I want to repeat this, to ensuring that the Regulator is equipped with the necessary powers to fulfil its statutory function, subject to legislative and consultative processes. So I cannot be any clearer on that, and I hope to see clear progress on this in the near future. And, as I mentioned, this was a commitment in the programme for government as well, so it shouldn't be a surprise to anybody. Thank you very much. Thank you. Many thanks, Minister.