asked the Minister for Industry and Commerce what action he proposed to take in the light of the recent supermarket take-over to protect the interests of independent small traders throughout the country.
Ceisteanna—Questions. Oral Answers. - Supermarket Take-overs.
25.
I expect to receive before the end of the month the report of the Fair Trade Commission on the grocery trade and if the Commission find that the concentration of purchasing power in the hands of supermarket chains is giving rise to unfair methods of competition I can make an order prohibiting such methods.
Also, I have before the Dáil at present the Restrictive Practices Bill, 1971, which will ensure more effective investigation of restrictive and unfair practices in the supply and distribution of goods and the provision of services.
Furthermore, I intend to introduce during the present session a Bill which will provide for the investigation and control of monopolies, mergers and take-overs. The Bill will empower me to prohibit a merger or take-over or, in the case of a monopoly, completed merger or take-over, to require the dissolution of any trade or business where the arrangement restricts or is likely to restrict competition in a manner contrary to the common good.
Does the Minister agree that, while it is desirable to have foreign capital to establish industry, it is not desirable that foreign capital should be used to control the retail outlets in this country? Is he aware that if this is allowed to continue, combines will completely control the retail trade to the exclusion of the family grocers and the retail traders, who operated for quite a long time? I am sure the Minister is aware that the retail trade want action. They are not satisfied with pious platitudes such as those delivered at the convention of the RGDATA by the Minister. They want the Minister to act and act now, because if he waits much longer it will be too late.
I appreciate the Deputy's interest. It is encouraging to feel that when I introduce the legislation during the present session I will have his co-operation in getting it through and there will be no delay.
Has the Minister seen the figure in the papers suggesting that with the merger of these two firms they will deal with 10 per cent of the grocery trade of Ireland? Is that correct?
This is an estimate. From my investigation of the position this would appear to be so.
Of their 34 branches 30 are in Dublin so it is reasonable to assume that they probably have 20 to 25 per cent of the trade in Dublin. Is not this already a monopolistic situation?
There is the question of my capacity to deal specifically with it.
The Minister for Justice could produce a Bill in 72 hours. The Minister referred to his legislation at least 12 months ago.
It is quite involved. In relation to the covering of mergers and take-overs the preparation of legislation is not simple. The Minister for Justice prepared legislation to deal with a specific problem. It is a very different and more difficult problem to prepare the proper type of balanced legislation to cover a problem of this nature.
Has not practically every country in the world legislation to deal with the situation?
The question is whether the legislation is satisfactory. The problem is not confined to this country.
Question No. 26.
In view of the fact——
I have called Question No. 26.
Is the Minister against the principle of a firm merging to become more competitive?
That is a separate question.
Against the principle? No. Some mergers are very necessary. This is the difficulty.
26.
asked the Minister for Industry and Commerce if he would elaborate on a newspaper report (details supplied) that he would make an order relating to a recent merger in the retail grocery trade sector.
The newspaper report in question related to my speech at the Annual Convention of RGDATA but did not give the full text. I did not say that I would make an order relating to a recent merger in the retail grocery sector. I said that I expected to receive before the end of the month the report of the Fair Trade Commission on the grocery trade and, if the Commission found that the concentration of purchasing power in the hands of supermarket chains resulted in unfair methods of competition, I would make an order prohibiting such methods.
Could the Minister indicate what are unfair methods of competition? In reply to a previous question he used a similar phrase: "unfair methods of purchasing". How does he define an unfair method of competition and an unfair method of purchasing?
I do not want to comment on that until I get the report of the Fair Trade Commission.
In the most hypothetical way, can the Minister define, with no reference to the problem in hand, an unfair method of purchasing or an unfair method of competition?
One of the difficulties about unfair competition in relation to——
Define it.
I am waiting for a report from the Fair Trade Commission at present in relation to what they consider, having examined the trade —as to whether they feel that there are unfair methods of competition. We have had restrictive practices before.
Surely this is the problem on his hands—a definition of unfair method of purchasing and unfair method of competition. Otherwise he must not know the first thing about it.
The remaining questions will appear on tomorrow's Order Paper.