I welcome the opportunity to debate this bill. I do not, however, agree with the thrust of the Bill, to amalgamate An Bord Glas with An Bord Bia as these two Boards have fundamentally different roles. Bord Bia is a marketing board whilst Bord Glas is primarily responsible for horticulture production.
I also believe that there is a real risk the smaller board will be subsumed into the larger organisation and will lose its identity and role. There is a danger that the consequence of the merger of An Bord Glas and Bord Bia will not result in an improved performance for the smaller organisation. Mergers do not always prove to be greater than the sum of the parts as many business mergers have failed to produce the expected result or indeed the promises made in advance.
The idea of the amalgamation of the two Boards was not driven by any concerns for the promotion of food production or marketing, but rather by the recommendation of the "Three Wise Men" whose job it was to recommend savings in the Budget in 2003.
It is clear that the overall financial gain from the amalgamation of the two Boards is extremely small. If this was merely about savings, then the Minister must answer questions in relation to all the other food promoting agencies and boards within his remit.
Why is Bord Glas selected for special attention? It would be much easier to save money if the Minister looked at all the state agencies that have a role in food promotion and to consider the amalgamation of those. For example, where does BIM fit in to the equation, or indeed the Food wing of Enterprise Ireland or the Irish Dairy Board? Is this nothing more than a cosmetic exercise so that small savings are made allowing the Minister and his Department to do something to keep the bookkeepers happy?
Bord Bia and An Bord Glas have each done a very good job. Just yesterday the Agriculture Committee had a very detailed and reassuring presentation from An Bord Bia. It is clear they are doing an excellent job in promoting Irish Foods.
Bord Bia is a marketing Board and its job is to promote Irish foods. As it has no responsibility for food production, it is questionable if the Board should in be under the aegis of the Department Of Agriculture in the first place.
Equally, it is clear that An Bord Glas has made a significant impact on horticultural produce in Ireland. It is a difficult area to manage and to compete within, because of the competition from imported products, but the technological advances within the industry have been very progressive.
HEALTHY EATING
An Bord Glas has an important role in the production of horticultural products, including amenity horticultural products. It is facing significant challenges in responding to changing consumer demands and in facing up to greater competition from exotic imported fruits and vegetables.
The lifestyle of the consumer has changed very significantly in the past few years as many more meals are consumed outside the home and the consumer is constantly looking for convenience. But the Health aspects of our diets and lifestyle have also modified. The emphasis on healthy eating is a golden opportunity as well as a challenge for the industry. Fruits and vegetables are identified as a major part of a healthy diet. Ensuring that the role and importance of fruit and vegetable production is not diluted in any way should be a major concern in the amalgamation of the two Boards.
Adding value to the commodities is a challenge that this country must continue to respond to. In horticulture, the basic commodity will be challenged as a commercial venture, unless there is back-up to support the adding of value to the basic product.
It is important to note that the emphasis on horticultural products has seldom been so acute. From a Health point of view there is an increasing emphasis on the importance of fruit and vegetables in our diet. It is fair to recognise that there is a very pro-active campaign by the Health promotion unit of the Department of Health, to get the message across about the need for the consumption of five portions of fruit and vegetables every day.
Last week the British Government agreed to provide vouchers for the purchase of fruit and vegetables for those in lower socioeconmoic groups, who might otherwise not be able to afford an adequate intake of these products.
The Health benefits have been well documented and the emphasis and the importance of horticultural produce in the diet has been well rehearsed. The amalgamation of the two Boards must not in any way allow a dilution of the importance of horticulture either to the economy of the sector or to the awareness of the value of fruit and vegetables in the diet.
The technology and infrastructure in the horticulture industry ahs increased tremendously in recent years. Production of high quality raw products, in particular mushrooms, is an area that has developed enormously. But the threat to this market is very real and the competition is very keen from other countries such as Poland and Holland.
LOSING IDENTITY
An Bord Glas is at risk of losing its distinctive identity arising from an amalgamation with the larger body. Bord Glas has carved out a distinctive and important niche for itself in horticulture. It is at risk of having that identity diluted and subsumed in the larger body.
While the establishment of a sub-board is important and is welcomed it is nevertheless at risk of being a very small player in a bigger field and thus losing its important niche role. It is crucial that membership of that Board will adequately represent the values and interests of the horticulture industry and are not merely token appointees to fill political gaps in the board.
I should like to emphasise to the Minister the importance of ensuring gender balance in making these appointments. It is not acceptable to say that no women's groups in the wider Agriculture interest area, have put forward names for appointment to boards under his remit.
AMENITY HORTICULTURE
Amenity horticulture has made tremendous strides in recent years. It is a thriving part of the horticulture industry, with a number of courses at universities dedicated to the Education and training of students for this particular aspect of horticulture.
Any appointment to a board must be sympathetic to the role of the amenity horticulture input of An Bord Glas and it is important that the appointees should be involved in or concerned with the importance of this aspect of the work of An Bord Glas.
The amenity horticulture aspect of horticulture is one very good reason why amalgamation of the two Boards does not gel very well. The argument that having the marketing of all food under the banner of one Board may be justified but adding potted plants in to the mix is not something that sits easily together. Is there a danger that this very important aspect of horticulture will be neglected or diluted down and it will be the net loser?
VALUE FOR MONEY
In his address in the Seanad, the Minister mentioned that we should consider the cost savings from the amalgamation. Is it not just a cosmetic exercise, Minister, as the savings will be very small on the overall budgetary scale?
I am not aware of any quantification of the savings that will arise from the amalgamation. If the basis of the amalgamation is one of finances, then it is important that the savings are quantified. Merging of market research, logos, quality assurance schemes, and promotional operations at various exhibitions throughout Europe and Ireland may well have a cost saving associated with them, but it needs to be quantified.
I could agree with the Minister's rationale if he proposed the merger on the basis of improved market access, improved quality, and increased value added to the products. But as a method of balancing the budget, it is surely going to have little impact.
If all of the virtues the Minister referred to are inherent in the change, why is it that BIM or the food element of Enterprise Ireland are not also part of the merger? The Minister refers to the good job done by Enterprise Ireland in various sectors. The Minister also makes the point that if one is setting up a poultry industry that one does not go to the Department Of Agriculture but to the Department of Enterprise. No doubt Enterprise Ireland is doing a very good job, but surely this plethora of resource spread and diffused around the various departments should be co-ordinated?
I make the case once again for the need for a Department with specific responsibility for food.
Just recently the Minister co-ordinated the labelling of foods under one banner and that is very welcome as it brings order to the system. On one hand it seems that there is a will to bring together all of the labelling issues under one banner, yet on the other is there not some purpose in bringing together all those boards, and state organisations that have a role in the establishment and promotion of food operations?
This is not what is happening in the proposed amalgamation of Bord Glas and Bord Bia.
There are shades of the labelling confusion developing when one looks at the various bodies and organisations with responsibility for food. Many of them are being left as stand alone enterprises. Is it possible that An Bord Glas is simply the fall guy in this process and because of its size, and despite its unique role, that it is an easy target?
Last October, the Minister for the Marine publicly denied that there are any plans to trim down BIM. In relation to concerns expressed about the amalgamation of BIM with Bord Bia, the Minister for the Marine stated:
"We want to make sure that we have proper synergies for the money we have, and spend it a bit more wisely, But nothing will happen until I am absolutely satisfied that it makes sense, and I have seen nothing to date that would suggest to me that anything should change."
However, in November the Minister had a slightly different slant on the future of BIM. This time he refused to rule out any initiatives that could improve the State's performance in the marketing and promotion of Irish seafood.
Mr Hugh Byrne, the now chairman of BIM and formerly Fianna Fail TD, said that marketing fish was a very specialised skill and involved a very different language and a very different approach to that taken with other food products. Could I suggest that the exact same argument might be well applied to Bord Glas?
I am arguing in favour of retaining the unique nature and characteristics of a horticulture Board, in the same way as fish marketing is seen to be unique It seems however, from the later comments of the Minister for the Marine that there are other plans. Is it not reasonable that all of these should be addressed together, rather than in a piecemeal fashion as is happening here.
While I believe that there is a case for the rationalisation and amalgamation of some of the various bodies that have grown up around the food business in Ireland, I believe that there are many bigger questions to be addressed before the amalgamation of Bord Glas and Bord Bia is completed.
