A new law, which will come into effect in Ireland, this year will boost “corporate transparency and enhance public scrutiny” of agriculture, food, fisheries and environmental issues, according to an independent senator.
European Union member states must transpose a new Country-by-Country-Reporting (CbCR) directive into domestic legislation by June 22, 2023.
This will require require multinational companies with a total consolidated revenue of more than €750 million to provide a significant level of information on their operations.
According to Senator Victor Boyhan, who is a member of the Oireachtas Committee on Agriculture, Food and the Marine, this will bring “a new level of scrutiny and will add greater transparency, particularly in the areas of agriculture, food, fisheries and environmental issues”.
EU law
The senator confirmed to Agriland that a new Seanad select committee is to be established in the coming week to scrutinise the transposition of EU directives into Irish law.
“EU law is superior to national law. This means that Ireland along with other member states cannot pass national laws that contradict EU laws,” Senator Boyhan said.
“Ireland has racked-up millions of euro in fines for failing to hit EU deadlines in the past, but this new select committee, in collaboration with established Oireachtas committees, will seek to ensure that no longer happens.”
Senator Boyhan believe that agriculture and environmental directives coming from the EU need “particular forensic scrutiny” by the new Seanad select committee to be established.
ICSA
Meanwhile the Irish Cattle and Sheep Farmers’ Association (ICSA) also believes the EU’s CbCR directive has the potential to “deliver real transparency around who is making what margins along the food chain and expose excess profiteering”.
ICSA president Dermot Kelleher said “This directive is a welcome move by the EU to bring more transparency to the operations of key large-scale operators in the food chain, but it is vital that no leeway is allowed to dodge its provisions.
“Companies such as certain meat processors avoid having to file detailed returns to the Companies Office, because of their unlimited status.
“This is making the task of understanding who gets what in the food chain very complex and challenging. We don’t have transparency over where the profits from beef go for example.”
Kelleher said the ICSA welcomes the directive but it wants “to see it deliver real transparency around the profits in the processing and retailing sector”.
It believes that once the directive is transported into Irish law it will provide assistance to Ireland’s new food regulator.