The Present and Future Challenges Facing the Domestic Food Industry
Session: 15th Estonian Parliament, third sitting, information briefing
Date: 2024-03-13 14:35
Participating Politicians:
Total Speeches: 16
Membership: 15
Agenda Duration: 16m
AI Summaries: 16/16 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
This agenda item of the current Riigikogu session addressed the challenges facing the domestic food industry. It was initiated by Riigikogu member Lauri Laats (Centre Party) with a question directed at Prime Minister Kaja Kallas. Laats expressed deep concern over the recession, low consumer confidence, and the 42% rise in food prices over two years, which has resulted in the cessation of operations for domestic producers like Kehtna and Rahinge Meat Industry. He emphasized that the proportion of imported foodstuffs on store shelves has climbed to 40%, posing a threat to Estonia's food security. Laats criticized the government, arguing that unlike neighboring countries (Poland, Latvia, Lithuania), Estonian producers receive no state support, with the government instead relying solely on market self-regulation. Prime Minister Kaja Kallas (Reform Party) responded to the criticism by first highlighting the opposition's contradictory stance: demanding subsidies while simultaneously opposing new taxes (a reference to the hoodies bearing the slogan "No Car Tax"). Kallas acknowledged the difficult situation in the food industry but stressed that the price increase originates primarily from retail trade, not production. She pointed out that the drop in food industry production volumes (3.6% in 2023) was less severe than in several other sectors of the manufacturing industry. Kallas defended the government's economic policy, citing the abolition of the tax 'hump' (tax bracket distortion), which boosts people's purchasing power, and energy policy decisions aimed at reducing input costs. The discussion also broadened to the general restoration of economic growth and concluded with procedural questions regarding the Prime Minister's personal comments concerning the seating arrangements of opposition members.
Decisions Made 1
The agenda item discussed was an interpellation of the Prime Minister, during which no official decisions or legislative bills were adopted.
Most Active Speaker
The most active identified politician was Riigikogu member Lauri Laats (Centre Party/Opposition). Laats posed both the initial question and a thorough follow-up question, focusing on the crisis in the domestic food industry and the threat to food security. He criticized the government for the lack of direct state support for producers and demanded that the government set clear goals to ensure the share of domestic food production, similar to its energy policy. His position was clearly critical of the government's policy and demanded state intervention to regulate the market.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that the third question would be addressed to Prime Minister Kaja Kallas and presented by Riigikogu member Lauri Laats. The topic concerns the current and future challenges facing the domestic food industry.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats highlighted that the Estonian food industry is facing challenges: the economy is declining, food prices have risen by 42% in two years, consumer confidence has dropped, and 40% of the products on store shelves are imported, which has led to the closure of meat processing plants. He calls for a discussion, from a security perspective, regarding state intervention and the necessary support measures for producers.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas highlighted that there is a contradiction between demands for support and tax increases, and the money comes from the taxpayer's pocket. She noted that the price increase stems mainly from retail, not producers, and although the food industry is facing difficult times, the 2023 production volume in the food sector fell by only 3.6%, and the production of food products has grown over the long term.
Esimees Lauri Hussar
AI Summary
Chairman Hussar thanks and asks Lauri Laats to ask a clarifying question.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats stated that he does not support the car tax, has repeatedly presented three proposals (e.g., a bank tax, maintaining the tax burden, and cutting the state apparatus), and stressed that it is equally important to ensure domestic food production and energy security. He added that by 2030, both energy and food should be produced in Estonia, and asked whether the government also has specific food targets in place.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kallas emphasized that the two biggest impacts of abolishing the tax hump are the easing of labor costs and higher incomes for people earning under 8,000 euros, which will boost consumption. However, while the state's budgetary position has improved, raising the salaries of all state officials simultaneously is not possible. Instead, the focus will be placed on boosting the competitiveness of the food industry through energy-saving measures, the activities of the Ministry of Regional Affairs and Agriculture, the implementation of circular economy principles, and the establishment of strong partnerships.
Esimees Lauri Hussar
AI Summary
The Chairman expresses his thanks, announces that there will be one additional question, and asks Aleksandr Tšaplõgin to take the floor.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksandr Tšaplõgin posed a question to the Prime Minister during the session, asking why the economic recession in Estonia has already lasted for over two years. He also inquired what has been done to restore economic growth and what is planned for the future, and requested that the Prime Minister name at least one specific company whose production and jobs have been helped to preserve.
Peaminister Kaja Kallas
AI Summary
He points out that the Center Party’s previous influence, which had them in the lead, has now been replaced by a backseat role, and they are few in number—this is quite a drastic change.
Esimees Lauri Hussar
AI Summary
The Chairman apologized and clarified that Aleksandr Tšaplõgin had to return to his seat due to a technical issue, as the console in front of him was not working. Tšaplõgin continues to occupy seat No. 5 in the Riigikogu.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas stated that the Estonian economy is competitive and growing, energy prices have fallen, wage and pension growth has materialized, and the number of jobs has increased. Simultaneously, the state is investing 1.9 billion euros, and the objective is to improve people's standard of living, even though external factors and the state of the Nordic economies are having an impact.
Esimees Lauri Hussar
AI Summary
The Chairman thanked the participants and concluded the consideration of the third item, announcing that before the fourth item is addressed, the procedure for conducting the session will be discussed, calling upon Anastassia Kovalenko-Kõlvart.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
He said that he was upset by the prime minister's comments and that, due to a technical reason, some MP had to sit in a different seat. He also noted that his own console wasn't working, and thanked the Speaker, who immediately paid attention to the matter and interrupted the prime minister's address.
Esimees Lauri Hussar
AI Summary
The Chairman expresses thanks but does not deem the question presented to be a procedural matter, and directs attention to the procedure for conducting the session.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev asks the session chairman to call the Prime Minister to order, because instead of providing answers to the questions, off-topic comments are frequently made.
Esimees Lauri Hussar
AI Summary
I pointed out that the chair of the session intervened, and after that, the discussion continued on topic.