Vol. 514 No. 1
47 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the far-reaching implications of the recommendations of the competition and mergers review group on the removal of the 1987 groceries order; and if she will make a statement on the matter. [3649/00]
The competition and mergers review group has published a discussion document on the Restrictive Practices (Groceries) Order, 1987, calling for submissions from interested parties on its draft proposals. When it has fully considered the proposals the group will draw up its report and recommendations for the Minister for Enterprise, Trade and Employment on this and the other areas covered by its terms of reference. As the final report has not yet been received, it would be premature to make any comment on the issue.
What is the Minister of State's view on the recommendations for the removal of the order? Does he agree that the order has been fair given the huge investment that has occurred since its implementation in 1987?
I read with interest the debate on this issue recently at the Oireachtas Joint Committee on Enterprise and Small Business, to which Deputies Perry and Owen contributed. Such questioning of the personnel involved is very helpful from our point of view. A number of features of the groceries order have become redundant since the enactment of competition legislation in 1991 and 1996. However, there are a number of options. It could be repealed or replaced by regulation or legislation.
We must concentrate on the concerns of small independent retailers. That is an important factor as we think our way through this. The Government will not outline its position until it receives the final report from the review group, but the concerns of such retailers must be seriously considered in terms of dealing with this issue.
Is the Minister of State aware that food price inflation in Ireland is lower than general inflation and is less than that prevailing in the UK and elsewhere in Europe? I fully recognise the competence of the review group in terms of competition and mergers but I question its ability, expertise and whether it has the indepth knowledge to understand and address the key issues relating to the groceries order. Its recommendations, therefore, must be carefully studied by the Department.
The fact that a slim majority of the group was in favour of not including the ban on below cost selling in any new legislation and that views were very divided means that we must be careful. I am conscious also of the UK experience and the Deputy's comments with regard to inflation. A great deal of information is available but the fact that the group appeared before an Oireachtas committee is important because it gave Members an opportunity to question those with diverse views on the issue. One must be careful about how one proceeds with this matter. A wide range of groups have a view and Aldi is the only multiple seeking any movement on this issue. The issues of hello money and below cost selling are important and must be addressed carefully. My one concern in regard to the introduction of legislation or regulations is that the concerns of independent retailers are borne in mind. This issue came up when we discussed Sunday trading and at that time I was concerned that we ensured that the position of the small shopkeeper would be borne in mind.
Is the Minister of State satisfied that the order is not in breach of the competition authority and other EU directives?
Yes.
It is not in breach.
It is not in breach.
