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Dáil Éireann debate -
Tuesday, 1 Jul 2003

Vol. 570 No. 2

Other Questions. - Groceries Order.

Eamon Ryan

Question:

72 Mr. Eamon Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she intends to review any aspect of the Groceries Order, including the current restriction on below cost selling practices. [18589/03]

Olivia Mitchell

Question:

117 Ms O. Mitchell asked the Tánaiste and Minister for Enterprise, Trade and Employment when she will finalise her review of the Groceries Order 1987; and if she will make a statement on the matter. [18576/03]

Breeda Moynihan-Cronin

Question:

131 Ms B. Moynihan-Cronin asked the Tánaiste and Minister for Enterprise, Trade and Employment when she intends to publish the results of her review of the Groceries Order 1987; and if she will make a statement on the matter. [18463/03]

Denis Naughten

Question:

149 Mr. Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans to review the Groceries Order; and if she will make a statement on the matter. [18266/03]

Seán Haughey

Question:

158 Mr. Haughey asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has plans to change the Groceries Order; and if she will make a statement on the matter. [18525/03]

I propose to take Questions Nos. 72, 117, 131, 149 and 158 together.

When the Tánaiste last reviewed the Groceries Order in 2000 she indicated that the grocery sector was changing and that the matter would be kept under review. Since then there have been a number of developments in the sector, in particular the increasing presence of the so-called discounters, such as Aldi and Lidl. The Government, particularly the Tánaiste, as Minister for Enterprise, Trade and Employment, is dedicated to tackling factors which impact negatively on consumers or which contribute to high inflation.

The recent Forfás report confirms that inflationary pressures on consumers have increased and Ireland is now the most expensive country in the Eurozone for food. In light of these factors, the Tánaiste has decided to reconsider the operation of the order, in particular the ban on below cost selling. Since she announced that she was reconsidering the order, she has received a significant amount of correspondence from interested groups and individuals seeking retention of the order. She has also met a number of interested parties to discuss their concerns. She is continuing to consider what action, if any, is appropriate in relation to the Groceries Order and I will bear in mind the views of all interested parties, and the interests of consumers, in that regard.

I wish the Tánaiste well and regret she is not able to be here today. I am pleased to hear that she is reviewing the matter. Will the Minister of State say when such a review will be concluded and whether the related issue of retail planning guidelines in terms of the size of stores will be reviewed at the same time? Is this the responsibility of the Tánaiste or the Minister for the Environment, Heritage and Local Government? Are the two issues connected in any way in terms of the review the Tánaiste is carrying out?

Given what has happened in recent years in the Irish retail sector, that is, the introduction of a significant number of new discount store operators such as Aldi and Lidl, is it not strange that the Tánaiste believes inflation is due to lack of competition when the truth is that Government inflationary policies in the two years leading up to the election brought about inflation? Why is the Government trying to blame the retail sector for its economic mismanagement?

I cannot say when the Tánaiste will have a decision but I will relay the message to her. Capping the size of retail outlets is the responsibility of the Department of the Environment, Heritage and Local Government. In relation to inflation, the argument has been put forward that the rate of inflation in the grocery sector is way below the general level of inflation. Therefore any decisions taken by Government in that area did not contribute to the inflationary increases.

In his last response, the Minister said the latest inflation statistics we had at our disposal indicated that food prices have increased by 1.6%, which was approximately half the annual rate of inflation. Why is a review taking place if the Minister believes there is sufficient competition in the grocery trade and prices are below the current annual rate of inflation?

In response to Deputy Howlin, the Taoiseach stated on a number of occasions that no review was taking place. What is the position? Is the Tánaiste reviewing the matter off her own bat? Are Fianna Fáil politicians who are going around telling people in retail outlets that no review is taking place wrong or what is the Government's position? Is the Tánaiste doing one thing without telling the Taoiseach? The Taoiseach is misleading the Dáil if that is the case.

The Tánaiste has decided to review the matter and she will make a statement in the near future.

Following from Deputy Hogan's comment, will the Minister of State tell the Taoiseach so that he will know a review is taking place, because he clearly did not know when he answered my question in the House. Is the impact of inflation the only matter that will be considered in the review or will the social implications of removing the Groceries Order also be considered?

Is the Minister of State aware that the Committee on Enterprise and Small Business is considering the issue and that the previous committee has reported on the matter? Will the views of the committee be taken into account before the Tánaiste comes to a conclusion?

Consideration will be given to the social impact of a change to the Groceries Order. One argument for retaining the order is that if it were changed and we had below cost selling prices, initially that might be good for the consumer but in the longterm many independent retailers would be blown out of the water by bigger outfits, which would then be in a position to fix whatever price they wanted. The Tánaiste will take note of that.

It sounds like the Minister of State has a strong opinion on this.

I am surprised but glad to hear the Minister of State making a very strong case against the Tánaiste carrying out a review of the Groceries Order. Will he outline the representations that have been made on behalf of those looking for a review? Who has gone in and what claims have they made?

Stating facts or stating what may or may not happen does not outline what side one is on. These issues will have to be taken into consideration.

Does the Minister of State have any influence in this area?

No, I do not have responsibility for this area.

Influence, I said.

I will tell the Tánaiste Deputy Hogan is in favour of this.

The Minister of State should have a word with his leader.

I do not have a list of those who have made representations to the Tánaiste but I will get it.

Will the Minister of State circulate the list?

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