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Dáil Éireann debate -
Wednesday, 24 Mar 1999

Vol. 502 No. 4

Written Answers. - Retail Sector Regulations.

Ivor Callely

Question:

32 Mr. Callely asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures, if any, available to her if a grocery operation in Ireland with an overseas sourcing and purchasing office requests its suppliers for hello money or any other incentive to allow their product to avail of desired shelf space; and if she will make a statement on the matter. [8364/99]

Michael D'Arcy

Question:

50 Mr. D'Arcy asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will clarify the position whereby supermarkets require suppliers to pay extra for bonus points schemes where products are specially promoted; and if she will make a statement on the matter. [8352/99]

Ivor Callely

Question:

74 Mr. Callely asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to any difficulties which suppliers have experienced in getting their product on a retail outlet shelf without having to offer special discounts, long-term agreements or other incentives; and if she will make a statement on the matter. [8464/99]

I propose to take Questions Nos. 32, 50 and 74 together.

The Restrictive Practices (Groceries) Order, 1987, covers all grocery goods with the exception of fresh fruit, fresh vegetables, fresh and frozen meat, and fish as well as intoxicating liquor and other household goods ordinarily sold in grocery shops. The order prohibits practices such as below cost selling and advertising, boycotting, and hello money and provides for controls on terms and conditions of supply.

The order is enforced by the Director of Consumer Affairs who has to date investigated in depth more than ten cases and has taken three alleged breaches of the order to court since the order's commencement. A recent allegation concerning a supermarket group is currently being investigated by the director.

As I said in this House on 25 February last, I am deeply concerned that there is any suggestion of a breach of the groceries order which would be a most serious development that would fundamentally be anti-consumer.

Any allegations that commercial arrangements exist which may be in contravention of the Restrictive Practices (Groceries) Order, 1987, should be drawn immediately to the attention of the Director of Consumer Affairs who is responsible for enforcing the order and whose job includes advising business in this regard.

Precise details of any arrangement including suppliers paying extra for bonus points schemes where products are specially promoted would need to be examined in detail by the director to determine the position.

In regard to the issue of overseas sourcing, the provisions of the order refer specifically to the retailer in the State.

The Restrictive Practices (Groceries) Order, 1987 is currently being reviewed along with other competition and mergers legislation by the Competition and Mergers Review Group. The group's terms of reference are to review and make recommendations on:– the mergers legislation in the context of a legislative consolidation; the effectiveness of competition legislation and associated regulations; cultural matters in the context of the 1991 Act and in particular section 4(2) of that Act; and, appropriate structures for implementing the above legislation.
The primary purpose of the review group is to make recommendations designed to further improve on our competition regime in terms of its legislative provisions and its structures including reviewing the position of the Restrictive Practices (Groceries) Order, 1987 with a view to making appropriate recommendations in this regard for the future.
We expect to receive the report and recommendations of the group this year.
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