asked the Minister for Industry, Trade, Commerce and Tourism when he proposes introducing legislation to outlaw below cost selling.
Ceisteanna—Questions. Oral Answers. - Below Cost Selling Legislation.
12.
I have no plans at present to introduce legislation to ban below cost selling.
As the Deputy will know, the subject of below cost selling in the grocery trade has already been the subject of a public inquiry by the Restrictive Practices Commission. The commission, in their report, came out clearly against such a ban which would effectively, represent a form of resale price maintenance.
Is the Minister aware that the Joint Oireachtas Committee on Small Businesses considered this matter recently and made special reference to it in their report published last week? They came out strongly in support of a recommendation that the Minister should reconsider his position in regard to low cost selling. Would the Minister agree that it is common legislative practice in most other European countries that there is a ban on low cost selling and that all the major multiples in this country have indicated their support in having this matter legislated for?
My primary interest in a matter of this kind is that of the consumer who is anxious to obtain a product at as competitive a price as possible, and I am sure the Deputy shares that concern and that that was the view he held when he was in my area of responsibility as Minister. I have to admit that I have not yet read the small businesses committee's second report which is a very detailed and comprehensive document setting out recommendations on a host of subjects of which this was only one. I have read the recommendations but one can never judge the recommendations in any report without reading the text. I would not wish in any way to appear to be dismissive of a report prepared with such care, but that report was prepared by a small businesses committee whose specific mandate was the concern of small businesses. The Government and this House, while they have to take into account the concerns of small businesses, have other wider legitimate concerns to take into account as well, such as the concern of the consumer and I will be studying the report with great interest with that wider consideration very much in mind.
I share the Minister's concern so far as the consumer is concerned, but the point at issue is that, while most of the multiples would have been against the introduction of this type of legislation in the past, they have clearly indicated in the report that they are for it because they feel it would protect the consumer.
This makes me even more sceptical.
Would the Minister further agree that the market share of the multiples has grown enormously in the last ten years. It now stands nationwide at 58 per cent of all sales and in the Dublin area it is 81 per cent? Would the Minister not agree that the market share being controlled by a few multiples is undesirable and that the consumer needs protection from what might turn out to be a monopoly by the multiples?
That is a wider question. While the figures the Deputy gives may or may not be correct — and I am sure they are——
They are the figures quoted in the report.
I will not argue with that because I am sure the Deputy is right, but I must point out that there is intense competition between the multiples and there is no question of there being an monopoly. I have available to me very extensive powers under the mergers and monopolies legislation to act to prevent monopolies or even dominant positions being created through mergers. The local authorities already have extensive powers in the Planning Acts to regulate the creation of new supermarkets where they might be considered to be a threat in the existing fabric of the community in a given area.
A final supplementary. I am not going to allow a debate on small businesses.
Has the Minister recently considered the possibility of having this matter referred——
Referred to whom?
——referred to the director of mergers and monopolies to see if the situation which has been outlined in the report is coming closer to the position he referred to?
Although I received the report last week I have not yet had an opportunity to read it, and therefore my remarks must be read in that light. I am doubtful if there is evidence of a monopoly, or even a dominant position in terms of lack of competition arising. However, if there were evidence of same, I would be very concerned and would wish to take action.
As a member of that committee——
Has the Deputy a question?
——I am rather disappointed——
Has the Deputy a question?
Yes, a very short one. I am very disappointed that the Minister has not read the report.
I cannot read everything. I got the report only last week.
We spent a lot of time preparing that report.
I will read it. I have not read it yet.
I appeal to the Minister to read the report.
I can assure the Deputy that the report is of great concern to me. Most of its recommendations are of immediate concern to my Department. I will be reading the report. However, I would not wish, as may sometimes be the case, to give the House the impression that I read the report when I had not done so.
Question No. 13 will be taken as written.