Vol. 558 No. 6
12 Mr. Wall asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to a survey published by the Irish Farmers' Association which shows that consumers are being charged exorbitant prices for lamb products in Irish supermarkets; her views regarding the high margin between retail and wholesale prices on lamb meat sales; if she proposes to take action on foot of this survey; and if she will make a statement on the matter. [20819/02]
I am not familiar with the details of this study or the conclusion that there are high margins between retail and wholesale prices for lamb meat. If market participants feel, however, there are anti-competitive practices obtaining in the market they should make these concerns known to the Competition Authority, the independent body charged with enforcement of the Competition Act, 2002. It will investigate any such complaints. In 2000, the Government established an independent group to examine allegations of anti-competitive practices in the beef industry. The group reported that it found no evidence of anti-competitive behaviour, either in the pattern of cattle prices or in profit levels obtaining.
In relation to prices generally, I intend in the near future to introduce new price display regulations that will clarify and reinforce the responsibilities of the retail trade towards consumers. Retailers are currently required to display the selling price, and in certain circumstances the unit price, in a legible manner on or near all items offered for sale to consumers. All products sold by quantity, in the case of meat products by weight, must be labelled to indicate a selling price as well as a unit price, for example, a price per kilogram. The purpose of these regulations is to enable consumers to make informed choices between products and outlets and get maximum value in the purchases they make. The revised regulations in preparation will seek to give additional impetus to the realisation of that objective.
Does the Minister accept that there is a view among consumers that Ireland has become a rip-off country? According to a survey by the IFA, sheep farmers receive less for an entire lamb than Marks and Spencer, Liffey Valley, charges for 2 kilos of rack of lamb. As Minister with overall responsibility for consumer affairs, will she indicate if she has taken any initiative with regard to these matters?
I recently suggested that there should be a statutory obligation on the retailer to indicate the amount of a price increase within a period of, say, a week, so that in addition to being informed of price reductions, consumers will be notified of increases. Will the Minister consider implementing this?
Does the Minister agree that there is very little differentiation in the price offered for cattle by meat plants? By contrast, petrol outlets can offer differences of 15 or 20 cent per litre in one small town. Will the Minister re-examine this aspect? Does she agree that the concentration of economic power among the meat plants means that the margin for the producer continues to decrease?
Unfortunately, it is a worldwide phenomenon that producers are getting less. Coming from a small farming background I hear about this on a regular basis from my brother who is a farmer. I was brought up on a small 39 acre farm. I was not born with the silver spoon I am accused of having.
I take a positive approach to Deputy Howlin's suggestion that retailers should be required to display price increases in the same way as they display reductions. However, my officials are not impressed with the idea.
The Minister should overrule her officials occasionally.
It is not the case that they do not wish to proceed with the suggestion, but they drew my attention to many of the difficulties. Public servants are good at pointing out why a scheme or suggestion might not work. However, I have not closed my mind to implementing the suggestion. If it is easy to display a price reduction it should be as easy to display an increase. The more information at the disposal of consumers the greater the chance they will use their purchasing power to shop where they get better value.
Written Answers follow Adjournment Debate.
