Mairead McGuinness Fine Gael MEP

Comments in the EU Parliament in Strasbourg this morning from EU Commissioner for Industry and Entrepreneurship, Antonio Tajani, that the Commission reserves the right to legislate for problems in the food supply chain if talks ongoing between stakeholders fail to yield results, have been hailed as a step in the right direction by Ireland East Fine Gael MEP Mairead McGuinness.

However, responding, the MEP challenged the Commissioner to move beyond talk to action saying that in terms of the food sector “the Commission needs to learn from the mistakes of the financial sector and clear the industry of unfair and unethical practices now.”

McGuinness said the concentration of power in the retail chain is a major cause for concern for consumers and producers.

“There are practices taking place which are part of a relentless drive by major stakeholders to maximize their returns at the expense of those powerless to fight them.

“There is a real danger that the food supply chain could experience a collapse similar to the financial sector if we do not acknowledge and address these very real and serious problems.”

She said the CAP reform proposals talk of further greening of the CAP, more environmental requirements on farmers.

“Such requirements have costs attached to them. How can we match this with the relentless pressure for cheaper, higher quality food?

“A sustainable farm and food sector is vital for EU citizens. To secure it everyone in the chain must get a fair return and no sector should be allowed to exercise undue power over others, forcing them into a position of accepting terms and conditions that are unsustainable, unviable,” she said.

She said: “Competition is healthy, but, unhealthy competition is wrong, yet it is all pervasive. The food supply chain is currently working to the detriment of consumers and producers.”

McGuinness added that today marked the first time ever that there has been an acknowledgement by the Commission “that something is rotten in the marketplace and that action is needed.

“To date that action is focused on gentlemen’s agreement between stakeholders. If and when we discover that there are no gentlemen and that agreement isn’t worth the paper it’s written on, then regulation will be necessary,” she said.