EU Commissioner David Byrne is examining ways of funding local foodbusinesses to raise their standards of hygiene to EU level, and has proposeda new rule to exempt artisan producers from some Union food regulations'We're not insensitive to diversity and the promotion of diversityin the EU. We should always be sensitive to small producers, consistent withdiversity and consumer protection'

EU Health and Consumer Protection Commissioner, Mr David Byrne, is investigating the possibility of using Common Agricultural Policy (CAP) funding to bring local traditional food producers up to EU standards on hygiene. And he is considering capital grants for upgrading premises, rather than ongoing subsidies.

Such initiatives would solve a major problem facing these producers, many of whom are in danger of going out of business as the EU's food hygiene regulations are enforced ever more strictly across the European Union.

The Commissioner, who insists the issue is not one of choice and diversity being sacrificed for public health protection and food safety, considers something could be done under the rural development section of the "second pillar" of the CAP.

He hopes this support can be included in the mid-term review of the CAP. If successful, it would be the first time for such rural-based traditional food producers to be included in CAP funding, as distinct from other rural enterprises that are funded under the LEADER programme.

Mr Byrne has had discussions with the Agriculture Commissioner, Mr Franz Fischler, who is himself under pressure from stronger lobbies of artisan producers in France, Germany and Italy in particular. Groups such as the European Community of Cooks, the Slow Food movement in Italy and artisan producers in France have been making a strong case for derogation from the legislation that covers small food producers in exactly the same way as industrial producers.

"One of the things we are discussing is whether some of the rural funds should be spent on this," Mr Byrne says. "Franz Fischler and I were looking to see if adjustments can be made, or whether it's in the competence of the member-states. It's something I'm interested in and Franz is interested in."

He has proposed a new regulation, Com (2000) 438, which would provide exemptions from some regulations for traditional food producers. This is "going through the system" and could become law within 12 months.

Essentially, it is an extension of the 1971 Directive 118, which, he says, already allows EU member-states to derogate from the strict requirements.

But he says this directive needs to be transposed into member-states' laws, and adds: "Very often, it's a matter for member-states that they interpret the law into their own laws. That doesn't apply to the hygiene regulations. Member-states will have to follow the European directive [on hygiene\]. Hygiene is absolutely simple and straightforward. It's up to the people involved to identify the hazards,"he says.

Not only that - Mr Byrne warned just a couple of weeks ago that criminal sanctions are being considered where serious problems arise in food safety. Compare the sanctions already applicable to competition law, he says.

"At the moment, all I can do is bring a member-state to the European Court." But he stresses this sanction will not be invoked for minor infringements.

Mr Byrne adds: "We're not insensitive to diversity and the promotion of diversity in the EU. We should always be sensitive to small producers, consistent with diversity and consumer protection. Ireland's reputation as a producer of good, wholesome food should be preserved," he says.

He and Commissioner Fischler did a "round table" of visits to member-states on food quality - as distinct from food safety - last year and have prepared a report for a high-level group in Brussels and for Commission president Mr Romano Prodi.

Back home, the Minister for Agriculture, Food and Rural Development, Mr Walsh, says he has no problem pushing the case for financial support of small, artisan food producers, as part of the reform of the CAP.

Mr Walsh, who has worked to promote such producers in his west Cork constituency under the Fuchsia brand, says: "The anaemic type of food you get in many hotels in the world - we have gone to the limit of this amorphous type of food. People are saying: 'what about the lovely type of food that was available, the speciality regional foods.' I will be keeping a close eye on that.

"I have no difficulty in taking this forward as an objective, as a vision that we need for Europe. It's fair to say, in our experience of the Nice Treaty, that there was a bit of a backlash, a view that Europe was dictating to us," he says.

Mr Walsh says he is aware of the problems small producers have and some of the difficulties that are imposed on them by the EU.

"My only concern about those products is in the area of hygiene. In anything else, they should have encouragement for their uniqueness to the greatest extent possible," he says.

Mr Walsh favours diversity and regional designation - he takes credit for having Staunton's black pudding from Timoleague in Co Cork designated as a traditional food.

Commissioner Byrne has assured him that he "supports 100 per cent the development of artisan foods", the Minister says.

In west Cork, he explains, under the LEADER programme, support, encouragement and substantial funding have been given to 42 small food producers, including funding for capital development. Grant aid has been given to bring buildings and equipment up to required standards. However, such support is not generally available for small food producers. While waiting for an easing of the regulations, these producers basically get support only from Bord Bia.

Mr John McGrath, consumer foods and marketing director with the board, says he is very conscious that small businesses require different levels of assistance than more established companies. The board has a marketing participation programme, approved by the EU, which works with companies, providing marketing advice and marketing finance assistance. It runs a series of retail briefings where retailers from Ireland initially, and later from Britain in the main, are brought together with small producers.

In April Bord Bia will host an international speciality food event in Kinsale, where speciality producers will be able to show their wares to buyers from many countries.

By then, small food producers may have a clearer idea what assistance may come from Brussels.