Lack of action over alleged price fixing questioned

The Competition Authority is to be asked to appear before an Oireachtas Committee to explain why it has failed to take action…

The Competition Authority is to be asked to appear before an Oireachtas Committee to explain why it has failed to take action against beef processors over alleged price fixing.

The Joint Committee on Agriculture, Food and the Marine last night agreed to write to the anti-monopolies body, requesting a report on its investigation into the sector which began in 1997.

The initiative came following criticism of the authority by TDs, Senators and farming representatives.

Mr Denis Naughten TD (FG) said the authority's "dilly-dallying" over the issue was a "disgrace". He added that the body was "as much responsible as others" for the current beef crisis.

READ MORE

While the authority could not be compelled to appear before the committee, it will be invited to explain what progress it has made on the investigation over the past three years, said the committee's chairman, Mr Billy Kelleher (FF).

However, he noted that the allegations about cartels were hard to uphold without "hard facts" and added that farmers who had evidence of such malpractice should pass it to the Competition Authority or their local politicians.

According to a note circulated to Government ministers this week, one of the main reasons the authority had failed to pursue the allegations further was the refusal of the Irish Farmers' Association to produce evidence.

The note, circulated in advance of the establishment of an "expert group" inquiry into the issue, said the Competition Authority "made a number of attempts to arrange meetings, via the IFA, with individual farmers who might be in a position to provide first-hand evidence of recent developments, with little success".

Mr Adrian Leddy, the IFA's regional development officer for the west, however, blamed the authority.

Mr Pat O'Rourke, president of the ICMSA farming body, said the expert group inquiry would be "a poor substitute for the Competition Authority" as it did not have the same statutory powers.

In relation to the current crisis, Mr O'Rourke said the Minister for Agriculture and Food must share the blame with the Irish Meat Association. In fact, he said: "The Minister and his Department are probably more guilty because of their recent actions and indeed, their inaction.

"The Minister, rather than insuring that the improved market situation for Irish beef would result in higher prices for Irish farmers, decided to impose an extra £4 million charge on the beef sector."

He also warned that even if the processors and farmers agreed to 90p per lb for ordinary-grade cattle, the crisis in the sector would not be over.

Joe Humphreys

Joe Humphreys

Joe Humphreys is an Assistant News Editor at The Irish Times and writer of the Unthinkable philosophy column