Vol. 371 No. 8
asked the Minister for Industry and Commerce if he will introduce legislation to outlaw or control requests for "hello money", whereby major supermarkets demand payment of substantial sums of money from suppliers before agreeing to stock their products; and if he will make a statement on the matter.
113.
asked the Minister for Industry and Commerce the proposals, if any, he has in response to the recently published report of the Restrictive Practices Commission in relation to possible changes affecting the retail trade; and if he will make a statement on the matter.
I propose to take Oral Question No. 11 and Written Question No. 113 together.
The Restrictive Practices Commission recently furnished a report of a special review of the operation of the Restrictive Practices (Groceries) Order, 1981.
The commission's report, which has been published, makes a large number of recommendations in relation to the regime governing the relationships between manufacturers and suppliers, wholesalers and retailers in the grocery trade, including the question of "hello money".
I am at present considering these recommendations in the light of all the interests involved in the trade, including the recently published views of the Consumers' Association of Ireland, which were not included in the commission's report.
I would hope to make an announcement in the matter in the near future.
Is the Minister aware of the views of his party's former spokesman in this area, the present Minister for the Environment, that he was publicly in favour of a ban on below-cost selling? Will the Minister acknowledge that previous action in the area by successive Governments has been dictated by the view of the 1980 Restrictive Practices Commission report for example, and in view of the substantial change in their recommendations in this area will the Minister give a commitment to implement some of the recommendations?
I will consider the Deputy's views in examining the recommendations made by all the interests involved. I am also aware of the view of my colleague, the former spokesman in this area.
Will the Minister agree that the demand by supermarket chains for what is called "hello money" is very restrictive in relation to the number of new firms that can enter the wholesale or manufacturing trade in consumer goods? Will the Minister indicate whether this is in line with the proposed policy of Fianna Fáil to expand job creation? Many small firms unable to meet this demand for "hello money" of about £10,000 are simply excluded.
I have no doubt that supermarkets ask for about £10,000 or whatever the figure is and I would recommend to any supplier not to pay it. If a supplier's product is good enough, if the price is right, if the presentation is right, if he delivers on time, and if he does his job better than somebody else, the question of "hello money" should not arise. It is very foolish for any supplier to get involved in paying "hello money".
We will now move on to questions nominated for priority.
