asked the Minister for Industry and Commerce if his attention has been drawn to the effect below cost selling of potatoes is likely to have on the market with particular reference to supplies to the domestic consumer in the future; the full extent of the problem at present; if he proposes any measures to resolve the problem; if his attention has further been drawn to the fact that some potatoes are currently being sold at £20 per tonne below cost; if he intends introducing legislation to deal with the problem; and if he will make a statement on the matter.
Written Answers. - Potato Sales.
48.
My attention has been drawn to allegations that potatoes are at present being sold at retail level at prices which are considered to be below cost.
My concern about the disruptive effect of below cost selling in the market place is reflected in the Restrictive Practices (Groceries) Order, 1987, which I made in May last and which, inter alia, banned the retail sale of grocery goods below cost.
The Deputy will be aware, however, that fresh vegetables, together with other grocery goods particularly liable to deterioration, are excluded from the scope of the order.
Notwithstanding, I understand that the Director of Consumer Affairs and Fair Trade, who is responsible for enforcing restrictive practice legislation, is at present looking at the question of whether a particular supermarket may be in breach of the order in respect of the price at which they are selling potatoes. I propose to await the outcome of the director's examination before commenting further.