Food and Drink Industry Ireland (FDII ), the IBEC group that represents the food sector, has published the findings of a new survey, which indicates that the strong export performance of the food and beverage sector last year is to continue in 2011. The group however warned that poorly thought out legislation, such as the Climate Change Bill as currently proposed, risks damaging the sector's competitiveness and derailing its export growth potential.
The survey, which analysed food and beverage sector responses to the latest IBEC Business Sentiment Survey, found that the food industry was more positive about the business environment and about future prospects than the wider business community.
“To ensure the food sector continues to grow the focus must remain on competitiveness,” said FDII director Paul Kelly. “The food industry is deeply concerned at a number of recently published pieces of legislation that will push up costs and ultimately cost jobs. It is vital that the recovery is not undermined by rushed and poorly thought out legislation.”
The legislation causing concern is the proposed Climate Change Bill, and the publication last week of the Environment (Miscellaneous Provisions ) Bill 2011 which contains proposals allowing for significant increases in the levy for land-filled waste and for the introduction of a levy on waste destined for incineration.
Mr Kelly also noted that rising international food commodity prices, which have now surpassed their 2008 peak, while beneficial from an export perspective, were putting pressure on food processors and would ultimately contribute to food price inflation.
