asked the Minister for Industry and Commerce if he is aware of serious financial difficulties being experienced by a supermarket chain in Dublin; and if he will have a public investigation made of the credit facilities, discounts and other terms afforded to the firm in question and other traders with a view to ensuring that the wholesale and retail trades be conducted in a manner fair to shopkeepers and consumers.
Ceisteanna—Questions. Oral Answers. - Dublin Supermarket Chain.
32.
It would not be proper for me to comment on the financial affairs of a private business concern.
The operation of the Restrictive Trade Practices (Groceries) Order, 1956, as amended was reviewed recently and the report of the review was published in June, 1966.
If, however, the Deputy is in a position to provide information which suggests that unfair discrimination may exist in the trade the matter can be examined.
Would the Minister investigate the case, if I gave him the details, of a supermarket chain which is now in the red to the tune of £300,000? The firm in question was enjoying credits and discounts which were not made available to the rest of the trade. Having regard to this, would the Minister have the matter carefully re-examined as it would appear that the findings of the Fair Trade Commission are not now justified in view of this serious difficulty?
If the Deputy is referring to the firm to which I think he is referring, he will be aware that there have been some reports recently from the auditors and others connected with that firm which suggest that the difficulties do not arise from unfair discrimination in the terms of discounts or otherwise.
No. This firm was enjoying certain credits and discounts which to some extent created most unfair trading conditions for its rivals. While its rivals have maintained a position of solvency, this other firm has got into difficulties.
I do not know what the moral of that is.
They sell below cost. If a big firm comes in here from the North of Ireland with a capital of £100 and gets these credits and then sells under cost to the detriment of other businesses and then goes into liquidation, is this not unfair competition with a person who is trying to meet his commitments?
As I understand it, one of the causes of the difficulties of this firm was that it was meeting very stiff competition from other people, rather than that it was presenting such unfair competition as suggested.
Is it not the main reason that it was selling too cheaply and putting the small grocer out of business? This man comes from the North of Ireland or from Scotland and sells under cost and enjoys a good living for three or four years and then does not pay his creditors. This is going to hit the small grocers.
Produce a policy, Paddy.
The Minister should do something about it.