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Grocery Industry Competition

Dáil Éireann Debate, Thursday - 11 October 2012

Thursday, 11 October 2012

Questions (75)

Michael Healy-Rae

Question:

75. Deputy Michael Healy-Rae asked the Minister for Jobs; Enterprise and Innovation his views on regulating the retail sector; and if he will make a statement on the matter. [43978/12]

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Written answers

The Programme for Government contains a specific commitment to enact legislation to regulate certain practices in the grocery goods sector. I intend to give effect to this commitment by including an enabling provision in the legislation currently being drafted by the Office of the Parliamentary Counsel to merge the National Consumer Agency and the Competition Authority, which will allow for the introduction of a statutory Code of Practice. It is hoped that this legislation will be published later this year.

It is important to point out that in introducing a statutory Code the intention is not to protect one stakeholder over another nor is the Code intended to prevent stakeholders such as retailers and suppliers from engaging in robust contractual negotiations as happens in most other sectors of the economy. It is also the case that the Code is not seeking in any way to determine the price of grocery goods. Rather the essential value of the Code is that by regulating problematic practices in the grocery goods sector it seeks to strike a fair balance between the competing interests of the various stakeholders including the interests of the end user, the consumer.

The Government is strongly of the view that it important to ensure there is balance in the relationship between the various players in the grocery goods sector and that Ireland continues to have robust agrifood and retail sectors, particularly given the importance of these sectors to the national economy. The introduction of a Code of Practice, as provided for in the Programme for Government, is intended to achieve such a balance taking into account the interests of all stakeholders in the grocery goods sector including the interests of the consumer and the need to ensure that there is no impediment to the passing-on of lower prices to consumers.

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