Concessions will have to be made to Ireland on the Nice Treaty, Lord Haskins, the chairman of Northern Foods in Britain, has predicted.

"I think it would be an insult to engage in another referendum without some changes," he said yesterday. Concessions could be identified and another referendum held at the time of the next general election, he suggested.

He believed there was an element of "underlying chauvinistic nationalism" in Ireland in relation to the vote on the Treaty, with "a bizarre crowd getting together to give the establishment a bloody nose. I see signs of latent primitive nationalism in Ireland at the present time".

The big problem was political indifference, especially among young people, he said. "They don't think there is any need to engage in politics. If young people vote, I think you will get the right answer," he added.

Lord Haskins - formerly Mr Chris Haskins, who comes from Dublin - heads Britain's leading fresh food manufacturing group, supplying some 600 lines into Marks & Spencers food stores alone. He is a close friend of the Prime Minister, Mr Blair, and an adviser to his government on food and environmental issues.

In a robust address to Dublin Chamber of Commerce, Lord Haskins said French farmers, who had clout, and the Germans, who feared an invasion of Polish citizens, were also concerned about enlargement.

He said the problem of the euro was its relationship with the dollar. "Britain is very important to the euro. If Britain was a member of the euro, the currency would be immensely strengthened. In Britain, we have to remake the case for European membership. We will win that argument, but it has to be made," he said.

There was a better chance of reforming the Common Agricultural Policy now than at any time in the last 40 years, he said. The budget for farming would have to be reduced but subsidies to American farmers would also have to be cut. And he added: "If we put the CAP in place for a country like Poland, it will blow it."

The food industry was no longer the glamorous sector it was 30 years ago, said Lord Haskins. It was moving from being a producer-driven industry to a consumer-driven one. "The industry itself has been slow to recognise it and the farmers even slower. You can't pull the wool over consumers' eyes anymore," he said.

The manufacturing end was squeezed between farmers, with political clout, and retailers, backed by the consumers. "I would like to see a more equal relationship between manufacturers and retailers. There is a moment of truth coming for retailers if they don't realise they need their supply chain, much as the supply chain needs the retailers. It's partly too much food manufacturing capacity. The food manufacturers themselves cause the problem by not realising it," he added.

Lord Haskins said the quality of investment in the food industry in Britain and Ireland was "a disgrace" when compared with France, Germany or Holland. Productivity fell well below that of France, Germany or the US.

"You will find the Irish dairy industry has still got too much clapped-out capacity. I presume that is what Denis Brosnan has in mind," he said, welcoming the Kerry Group's move to take over Golden Vale. Food safety was a serious issue, but "the perception is worse than the reality". However, the industry had a responsibility to do something about the way people abuse food. "There is a new wave coming where people will produce high-quality, low-fat food that actually tastes like something," he said.