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Dáil Éireann debate -
Wednesday, 26 Jan 2000

Vol. 513 No. 1

Written Answers. - Anti-Competitive Practices.

Seymour Crawford

Question:

150 Mr. Crawford asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will include pigs and lambs in her inquiry regarding the anti-competitive practices within the meat industry; and if she will make a statement on the matter. [2175/00]

Nora Owen

Question:

160 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the nature of the inquiry she requested under the Competition Act into the meat processing business; when the inquiry began; the application, if any, made to the District Court to carry out physical inspections of offices or industrial premises of meat processors; if she received a report of this investigation; if so, the date in this regard; if not, if she sought a report; the status of this investigation; the nature of any current investigations under the Competition Act into the meat processing industry; and if she will make a statement on the matter. [2015/00]

I propose to take Questions Nos. 150 and 160 together.

I understand that one or more complaints have been made to the Competition Authority alleging anti-competitive activities in the meat processing industry and that this matter has been under investigation by the Director of Competition Enforcement for some time. Under the terms of the Competition Act, 1991, application may be made to the High Court for a warrant authorising the inspection of premises and documents found on such premises and the questioning of persons carrying out activities on such premises.

District Justices may not issue warrants unless they are satisfied by information on oath that it is proper for them to do so for the purpose of obtaining information necessary to discharge functions under the Act. I understand that it would not be usual to apply for a warrant unless the application can be supported by prima facie evidence that the Act is being breached. I understand that no application has yet been made in connection with the investigation being undertaken by the Director of Competition Enforcement.

The Competition Authority is independent in the exercise of its functions. The purpose of its investigations into complaints is to establish whether grounds exist for initiating legal proceedings against the undertakings complained of and they do not report to me on the outcome of those investigations.

Quite separately from the investigation being undertaken by the authority, the Government decided, at its meeting on 19 January, to establish an independent group to examine the continuing allegations of anti-competitive practices in the beef industry and the alleged failure of consumer prices to reflect reductions in producer prices. The independent group, which has already begun its work, is composed of Mr. Kevin Bonner, chairman, Professor Seamus Sheehy and Mr. Colm McCarthy. The terms of reference of the group are to examine allegations of anti-competitive practice in the beef industry; to establish why there is such a large differential between the producer price and the prevailing consumer price, and to make any appropriate recommendations in the matter.

Given the urgency of this matter and with a view to restoring confidence in the industry and ensuring that the interests of the consumer are protected, I have asked the group to report to me by 28 April 2000. As is evident from the terms of reference, the group's remit relates to the beef industry where the recent problems have arisen and I have no plans to include pigs and lambs in the inquiry.
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