Agri-Food Regulation
General
The Agricultural and Food Supply Chain Act 2022 provides for the establishment of a new independent statutory Office, the key objective of which will be to promote fairness and transparency in the agricultural and food supply chain. The proposed name of the Office is An Rialálaí Agraibhia (The Agri Food Regulator).
The Act gives further effect to Directive (EU) 2019/633 of the European Parliament and of the Council of 17 April 2019 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain. The Act defines the functions of the Agri Food Regulator including in relation to price and market analysis and reporting and enforcement of unfair trading practices concerning the agricultural and food supply chain.
The Act confers on the Minister for Agriculture, Food and the Marine the power to make regulations about unfair trading practices in the agricultural and food supply sector and connected matters including enforcement and provides for related matters.
The scope of the Act is agricultural and food products defined as (a) those products listed in Annex I to the Treaty on the Functioning of the European Union, (b) other products processed for use as food using products listed in that Annex, and (c) any other products which may be specified by the Minister by regulation.
The Regulator
The Act provides for the establishment day of the Regulator. The office is known as An Rialálaí Agraibhia (referred to as the “regulator” in the Act).The regulator is independent in the performance of its functions. The regulator shall be a body corporate, with an official seal with power to sue and be sued in its corporate name.
The functions of the regulator are to promote fairness and transparency in the agricultural and supply chain, while having regard to the circumstances and needs of the sector including in particular farming, fishing and small food businesses.
Functions
The Act sets out the regulator’s functions with regard to information and engagement, including the publication and analysis of price and market data relating to the agricultural and food supply chain, whether of its own initiative or by request of the Minister. It assigns responsibility to the regulator for enhancing understanding of and compliance with agri-food unfair trading law.
The Act designates the regulator as the Enforcement Authority for the UTP Directive and sets out the enforcement functions of the regulator in relation to unfair trading law, including that it may carry out inspections, investigate suspected breaches, promote the use of alternative dispute mechanisms, bring proceedings for offences, and refer cases to the Director of Public Prosecutions.
The regulator may publish guidelines for buyers about supplier protection and trading practices.
The regulator may review codes of practice submitted to it by a person representing one or more buyers. The regulator is responsible for providing information and advice to the Minister about the agri-food sector and agri-food unfair trading law. It is to comply with a request for advice from the Minister about relevant matters. It may undertake or commission research as required, and it may make recommendations and advise the Minister of its own initiative.
The Minister may consult with the regulator regarding proposals for legislation, that the regulator shall keep under review the relevant regulations and statutory provisions and make recommendations to the Minister for changing these regulations and provisions. It also provides that the regulator shall consult any persons it considers appropriate or specified for that purpose by the Minister before making such recommendations.
The Act provides for the transfer of functions and connected matters from the Unfair Trading Practices Enforcement Authority currently, operating in the Department of Agriculture, Food and the Marine, including anything commenced by the Enforcement Authority and any legal proceedings initiated.
Governance
The Act provides for the membership of the regulator providing that it shall consist of a chairperson and seven ordinary members of the Board, at least two of which will be primary producers. Board members shall be appointed by the Minister who appear to the Minister to have experience of, and to have shown capacity in, matters relevant to the regulator’s functions.
The term of office of a member of the board shall be five years from the date of appointment, except in the case of the first board whereby one member shall retire on each anniversary of establishment and provides that a member shall not hold more than two terms (whether consecutive or non-consecutive). There are procedures for disqualification, resignation, or removal from the board.
The Act sets out the functions of the chairperson of the regulator, provides that the term is for five years, and provides for procedures for the chairperson to resign or be removed by the Minister. It also provides that the Minister may appoint an interim Chairperson when a vacancy arises.
At meetings of the regulator, there shall be a quorum of 5, that matters are decided by majority vote, and that the chairperson shall have a second or casting vote in event of a tie. The regulator may establish committees to assist and advise it and to perform such functions of the regulator as it may delegate to a committee.
Chief Executive
There is a chief executive, who shall be a civil servant with a fixed, renewable contract.
The chief executive shall manage the staff and business, as well as perform any functions conferred by the regulator. The chief executive shall comply with the direction of the board.
Attendance Before Committees
The chief executive is to attend the public accounts committee. The chief executive or chairperson to attend before other Oireachtas committees, including the Select Committee on Agriculture, Food and the Marine.
The regulator is to submit a statement of strategy for each 3-year period from establishment day which shall specify the key objectives, outputs and related strategies of the regulator, specify the manner in which the regulator shall assess its performance, a review of the outcomes of the previous strategy, and any other matters directed by the Minister. This strategy shall be laid before each House of the Oireachtas and published as soon as is practicable.
The regulator shall prepare an annual work programme and submit it to the Minister. This shall include the objectives of the regulator for that year, the strategy to achieve these, the regulator’s priorities, and any other matters the Minister may specify.
The regulator shall prepare an annual report for the Minister which shall include recommendations to the Minister for legislation relating to any aspect of fairness and transparency in the agricultural and food supply chain, the remuneration of the chief executive, and any other information the Minister may direct. The Minister shall lay this report before each house of the Oireachtas, and the regulator shall arrange its publication as soon as is practicable.
The regulator shall publish a report of complaints received during the year, and the number of investigations opened and closed during the year. The regulator may publish details of its decisions on (a) prohibiting unfair trading practices, (b) requiring a buyer to cease a prohibited trading practice, or (c) imposing, or initiating proceedings for the imposition of fines and other penalties.
The regulator may make additional reports to the Minister about its functions or other matters as requested by the Minister.
Levies
There are powers for the regulator to impose levies to be paid by buyers who are subject to obligations under the Agri-Food Unfair Trading Regulations. These levies shall relate only to costs incurred by the regulator in the performance of its functions relating to unfair trading practices and shall only be made with the consent of the Minister and the Minister of Public Expenditure and Reform.
The regulator may specify on which activities or matters the levy shall be payable, which people shall be required to pay, and the amount. Draft regulations for these levies should be laid before both Houses of the Oireachtas and may not be made until a resolution approving the draft has been passed by each House.
Should there be a surplus in income from levies the regulator shall apply such surplus to its functions in the next financial year and reduce the levies prescribed accordingly. Should the levies be insufficient the regulator may prescribe increases in levies. The annual report and annual accounts shall include statements of amounts collected by way of levies and how these amounts were expended.