Optimism in the Irish Republic’s struggling fresh produce sector may be in short supply - but there’s still a feeling of “nervous excitement” about the new government that’s soon to take over, according to one grower.
“We’re nervous about the size of the task it will face, but excited that things might get better,” he explained as delegations from the Fine Gael and Labour parties, the two big election winners, opened talks on a new coalition administration. A joint policy programme and the share-out of cabinet posts will not be announced until next week.
Fine Gael, which will head the new government, has outlined plans to tackle some of the difficulties besetting the sector. It proposes the introduction of a state-backed credit insurance scheme that will enable growers to get the bank loans for investment and development that are currently being denied.
In addition, the party also proposes to halve employers’ pay-related social insurance (PRSI) to encourage employment, and to introduce a scheme bridging welfare and part-time work that could make a labour pool available to growers. “We welcome those measures, they would certainly help,” said PJ Jones, chairman of the Irish Horticultural Association.
“We also want to see the long-promised code of practice introduced that will guarantee fair play between suppliers and the multiples, and ensure we get a reasonable return on our produce.”
Both the government parties have also detailed plans to help retailers - promising the abolition of upward-only rent reviews that have led to store closures and thousands of lay-offs across the Republic. “We cannot allow landlords to continue to charge boom-time rents at a time when the country is deep in recession,” said a Labour party spokesman. “If we do, there will be many more closures and job losses.”
