The possibility of introducing an EU-wide framework surrounding the dominance of retailers in the food chain is being discussed in Brussels. However, the European Commissioner for Agriculture and Rural Development Phil Hogan told the Joint Oireachtas Committee on Agriculture on Thursday that it is a lengthy process as there could be unintended consequences and competition laws must not be breached.

“Twenty member states have decided to take action themselves which signifies very clearly that there is a problem,” Hogan said, adding that the UK model is “quite interesting”. “We have had a number of debates in Brussels about which is the best model to use ,conscious of competition law. We have to decide if there will be an EU-wide framework or not.”

Brexit

It is evident that there will be a cut in Common Agricultural Policy funding when the UK leaves the EU as it currently has a net contribution of €11bn to the overall EU budget.

“In the absence of contribution from that member state, there will be financial implications. Agriculture will, of course, come into the firing line,” Hogan said. However, he added that if member states want to make submissions in relation to the issue, they are free to do so.

The commissioner told the committee on EU affairs that there will not be a soft approach taken during exit negotiations.

“The UK is going to have a hard deal, it’s not going to have its cake and eat it,” Hogan said on the UK’s negotiations to exit the EU. “We are in this together to fight for the best possible deal for Ireland and the EU as a whole.”

He could not give any major insights into what sort of deal would be made.

“The truth is that nobody knows what the future holds,” he said, adding that a clearer picture will emerge when the UK declares what it wants in March. “There will have to be a relationship of some kind.”