James Lawless (Kildare North, Fianna Fail) | Oireachtas source

I thank Deputy Browne. I thank Deputy Tóibín for introducing the Bill and provoking the debate. He has attempted to address a significant issue. I have given reasons, which I will recap, as to why the Government is not in a position to support the Bill but, notwithstanding that, I commend the Deputy on his initiative in bringing it forward.

I listened with interest to Deputy Browne. Ash dieback is a valid point to raise. It is not part of this Bill but it is a valid point that has to be addressed. I thank him for raising it.

The difficulty is that although the concerns raised across the House are legitimate, the Bill is not seen as the correct vehicle to address them. That is nub of the issue in terms of where this goes next. If passed, the Bill would cause a number of undesirable side effects and consequences that would do nothing to alleviate the issues it purports to address. Rather, it could actually make them worse. It could exacerbate certain issues and have unintended consequences. As I pointed out in my earlier contribution, it could do the beef family farming model more harm than good.

It would result in cattle prices being entirely unrelated to the market price for beef. It would serve to distort the market and reduce the overall competitiveness of the Irish beef sector. It fails to take into account the sector's reliance on international trade. It is those external markets in the EU and other third countries that ultimately determine the price paid for Irish beef. It would likely lead to lower demand in those export markets where there is a strong possibility of excess supply due to an artificial price floor above the equilibrium price.

Closer to home, it would distort and disrupt the domestic supply chain. Retailers, distributors and the food service sector would be incentivised to source their supplies elsewhere. Paradoxically, this Bill could have the effect of reducing sales from Irish farms, ultimately resulting in industry contraction and the gradual erosion of demand from the processing sector.

Furthermore, legislating for a price floor is highly unlikely to meet the EU's legal test for justified and proportionate restriction on trade. Rules regarding the payment of bonuses by processors for the suppliers are private commercial matters between farmers and the meat factories. In brief, passage of the proposed Bill would simply serve to distort the market and reduce Ireland's overall competitiveness in this sector.

The Government's achievements in improving the productivity and competitiveness of primary beef producers are worth recapping. The Government has placed a strong emphasis on supporting farm incomes, improving generational renewal and strengthening farmers' position in the supply chain. The Government has provided €9.8 billion for the current CAP strategic plan, the highest amount ever invested by an Irish Government in the agrifood sector. The Minister has increased targeted supports to the beef sector in successive years through the suckler carbon efficiency programme and the national beef welfare programme. Budget 2025 increased the payment per suckler cow and calf pair from €200 this year to €225 in 2025, the highest level ever. There has been significant Government investment in the national genotyping programme, which will facilitate the closer integration and development of more sustainable beef and dairy herds.

An independent agrifood regulator has been established with the task of promoting fairness and transparency in the agrifood supply chain. The Government appointed a Minister of State with specific responsibility for new market development in the agrifood sector. There is close collaboration with cross-government Departments, State agencies, including Bord Bia, and the embassy network on maintaining existing markets and targeting new markets. Securing EU recognition and protected geographic indicator status for Irish grass-fed beef underscores the unique attributes of our production system and provides branding opportunities in key high-value markets.

Beef farming accounts for the majority of farm enterprises and makes a vital contribution to the economic and social sustainability of rural areas. While acknowledging that economic viability of beef production can be challenging, this Government has done more than any other to address those challenges. The Government has a proven track record of delivery, protecting livelihoods and providing targeted sectoral supports during its tenure in office. Working collaboratively with sectoral stakeholders, the Government has worked coherently and consistently to increase the resilience and overall value of the beef supply chain. Unfortunately, this Bill jeopardises the sector, rather than protecting it.

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