asked the Minister for Industry and Commerce if his attention has been drawn to the growing concern about the increasing monopoly developing in the fruit and vegetable distribution area, through the number of acquisitions made by a company (details supplied); if, in view of the possible implications of this development for fruit and vegetable distribution, he intends to take any action; and if he will make a statement on the matter.
Ceisteanna-Questions. Oral Answers. - Fruit and Vegetable Distribution.
25.
Concerns have not been expressed to me about a monopoly developing in the fruit and vegetable distribution area arising from acquisitions by a particular company.
I have powers under the provisions of the Mergers, Take-overs and Monopolies (Control) Act, 1978, as amended, to request the Fair Trade Commission, through the Director of Consumer Affairs and Fair Trade, to carry out an investigation into any alleged abuse of a monopoly. If it became apparent to me that an enterprise which held a monopoly in a particular sector was abusing its position, an investigation under these provisions would be instigated. The Act provides that having considered the report of the commission, and if the exigencies of the common good so warrant, I can by order either prohibit the continuance of the monopoly except on conditions specified by order, or require the division of the monopoly.
Would the Minister agree that our horticultural business is very important to the development of our economy? The present position is that a large number of growers in the Cork area are being subjected to pressure to supply the FII. The people they supplied in the business previosly are already linked with the FII organisation. There is evidence that this is happening. My question is based on the concern shown by such people. Is the Minister aware that a director of FII is also on the board of An Bord Glas?
I would prefer if the Deputy did not enter into the area of personalities.
I am merely making the point to show that there must be a conflict of interest if a director of FII, the company referred to as bringing about a monopoly is also a prominent member of the board on An Bord Glas. If evidence is supplied to him would the Minister investigate fully the question of the monopoly.
A monopoly does not exist. The Department of Agriculture and Food have confirmed that the company mentioned by the Deputy is the largest of four major participants in fruit and vegetable distribution. The market is extremely competitive with demand being determined by third parties, that is, the supermarket multiples. The conditions, therefore, would suggest that the negative characteristics generally associated with the monopolistic situation do not arise. So far as the gentleman referred to — I think quite improperly by the Deputy in this House — is concerned, he is giving his time and services free to the State to try to assist the development of horticulture in this country. It is appalling that he should be attacked in this manner in this House.
People who make their livelihood from growing vegetables fear that they will lose as a result of the pressure being put on them by FII for the takeover to which I have referred. That is not a matter that can be taken lightly by the——
The Deputy is making a statement rather than asking appropriate questions.