I propose to take oral Question No. 28, priority Question No. 50 and written Question No. 84 together.
I asked the Restrictive Practices Commission in July last to carry out a study of the alleged difference in retail grocery prices between the Republic of Ireland and the United Kingdom (including particularly Northern Ireland), and to report their findings to me. I have received that report and I am arranging for its early publication.
The commission's report examines the position disclosed in the surveys referred to and finds that there are a number of factors which can account for different price levels North and South. These include different VAT rates, payment of MCAs, differing freight costs and distributors' margins, marketing practices for individual products, differing product promotion or profit mix. In addition, the retailers' overall gross margin expectations in particular cases may be entirely different. One retailer may have a policy of low margin and high volume, while another may concentrate on service, variety, quality of goods, hygiene and so on and expect to obtain a higher gross margin as a result. Furthermore, in comparing the two markets there can be differences in timing of price increases or reductions and exchange rate differences, including the necessity to buy currency forward, can all bring about differences in prices between one market and another.
Some of the comments which have been made in relation to this matter did not make satisfactory allowances for factors such as these in arriving at conclusions regarding price differences.
I expect to be able to publish the commission's report very shortly and this will allow for a further and more informed discussion on the questions which have been raised.
A recent television programme on grocery prices referred to specific items and I have asked the Examiner of Restrictive Practices to investigate the detailed terms and conditions under which these specific goods were purchased and imported so that I can consider what further action might be necessary in relation to them. I am awaiting the examiner's report.