Government urged not to introduce ‘discriminatory taxes’ on food items

Ireland’s food industry is calling for the introduction of a grocery sector code of practice and a Government commitment not to introduce “discriminatory taxes” on food or packaging.

These are among the key demands in Food and Drink Industry Ireland’s ‘Hungry to Grow’ initiative, setting out the industry’s priorities for the coming year.

FDII director Paul Kelly said despite volatile commodity prices and a difficult domestic market, the industry remains confident it can build on the exceptional exporting success of recent years.

“The food industry needs specific food-related initiatives including the introduction of a grocery sector code of practice and the retention of the existing retail planning cap.

“We need an unambiguous and unwavering commitment from Government that it will not apply discriminatory taxes to food and packaging,” he said.

Mr Kelly warned that proposals emerging from “parts of government”, such as sugar and packaging taxes, were at odds with the established goal to grow exports by 42% to €12 billion by 2020, as set out in the Harvest 2020 vision for Irish agri-food and fisheries.

“Irish food and drink exports grew by around 12% in 2011 and it remains one of Ireland’s fastest growing export sectors.

“In 2012, global food commodity prices are expected to soften, however, improved competitiveness along with an increasingly diverse portfolio of products, and expansion to new markets will ensure growth continues.

“The domestic market is a key market for food and drink companies, and in almost all cases it is the springboard for export ambitions,” he said.

“However, trading conditions remain difficult due to low consumer confidence and downward pressure on margins,” Mr Kelly added.

FDII said competition policy must focus on the full food supply chain and not just the consumer.

“It must acknowledge the unique nature of the food chain and the export orientation of the Irish food and drink industry. Energy and waste costs must be reduced to the level of competitor countries,” Mr Kelly said.