Cost of living and food prices
Deputy O'Callaghan says families are still facing rising food, energy, rent and college costs and presses the Government to grant the food regulator stronger powers quickly. The Tánaiste agrees the crisis remains real, outlines support measures already in place, and says the draft statutory instrument is being worked through carefully.
I thank the Deputy. I am very much aware that the cost-of-living crisis is still real for very many families across the country. The Deputy has asked me a specific question, so I am going to spend the time on it. I do want to acknowledge that and I also want outline why the Government has taken a number of measures to protect the most vulnerable, including a very significant increase in the working family payment, an expansion of the fuel allowance and the permanent reduction of the VAT rate on energy bills. There is also the fact the Christmas bonus, which is paid to pensioners and people with disabilities, factually the most vulnerable people from an income point of view, will also be paid in the coming days. I know this makes a real difference to people at this time.
The Deputy has asked a very specific question. I acknowledge the work of my constituency colleague, Deputy Whitmore, in relation to this issue as well. As the Deputy said, an independent Agri-Food Regulator was established back in 2023 under the Agricultural and Food Supply Chain Act 2023. It has two key functions. One function is to enforce the law on unfair trading practices while the other is to perform price and market analysis and reporting functions. The Agri-Food Regulator has reported to my colleague, the Minister for agriculture, Deputy Heydon, that it does require more enhanced powers to compel businesses to provide information not in the public domain. I believe this relates specifically to the price and market analysis function. The Deputy referenced some examples where there has been a real challenge or inability to do that so far. The regulator does already have extensive powers to compel information when pursuing complaints under unfair trade and practices legislation but this aspect is more about the broader price and market analysis element as well.
Before I talk about expanding the powers of the regulator's office, I should also acknowledge that it has successfully secured a conviction under the Act. I acknowledge the regulator's work in relation to that. I know the Minister, Deputy Heydon, is fully committed to ensuring the regulator is equipped with the necessary powers to fulfil its statutory function. He has had to go through a consultative and now a legislative process. This is required to ensure the additional powers granted are proportionate. This is somewhat novel, and I only mean novel in a legal sense in terms of trying to get this right, seeking legal advice and making sure whatever we put in place stands up to the scrutiny of the law.
I know the Department of the Minister, Deputy Heydon, has engaged with key stakeholders in the supply chain, whether these are representatives of farm bodies, industry, retail, Departments, State agencies and, of course, the Agri-Food Regulator himself as part of a detailed consultative process. There has been legal scrutiny now of a draft statutory instrument. As I said, the legislation is novel. It does exceed the requirements under European law. That is not a reason not to do it but it does. Therefore, it is essential that anything we do does stand up to robust legal scrutiny.
I am pleased to assure Deputy O'Callaghan today that the process to deliver on this commitment is significantly advanced. I understand that my colleague, the Minister, Deputy Heydon, expects to be in a position to sign that draft statutory instrument in the coming weeks and no doubt will engage constructively with the Social Democrats and Deputy Whitmore on their proposals.
Comment on this
The food regulator asked for these powers over a year ago. Why is it taking the Government so long to give it the powers it needs to do its job? When we go into a supermarket, we see people at the checkout not being able to buy items and having to return them or leaving the supermarket stressed and worried about how they are going to meet their other bills during the week. This has gone on for well over a year without the Tánaiste's Government acting. Is the Government going to sign these extra powers in this year? Is it going to happen in the next couple of weeks in this year? Will the Tánaiste give us the detail on this? Are all the powers the food regulator needs to compel supermarkets, processors and anyone else in the supply chain to hand over the data required going to be in place to allow it to do its job? Are all those powers going to be in place in the next couple of weeks? Why has the Government delayed on this? Will the food regulator get the full powers? Will the food regulator now start going after price gouging? There is clear evidence of price gouging and profiteering taking place and of food prices increasing way above input prices. When is the Government actually going to act on price gouging?
Comment on this
I tried to largely agree with the Deputy on this occasion too. I accept it has taken a period of time since the regulator said it needed these new powers to get to this point we are at today where we have a draft statutory instrument. I would genuinely point out that those reasons are valid because this is a novel area. We are going beyond the requirement under European law. What we do has to be proportionate. We want to avoid any unintended consequences. In fairness, I know the Deputy wants to avoid that too. There is a whole supply chain here and we need to consult with all parts of it, including with representatives of the farming bodies, industry, retail and relevant Government Departments. We have increased the budget and the Minister, Deputy Heydon, secured this funding for the Agri-Food Regulator in the last budget, which enables it to prepare for and begin the process in terms of those new significant powers and hire the staff necessary to implement them. It is our expectation that this should be signed by the end of the year but I do want to give the Minister the space just to get this right. He is certainly working to try to get this done in a very short period of time. He will engage and keep in touch with the Deputy and his party colleagues on this matter.