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Grocery Industry Competition

Dáil Éireann Debate, Tuesday - 24 June 2014

Tuesday, 24 June 2014

Questions (243)

Brendan Griffin

Question:

243. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation his views on the below cost selling of farm produce, such as the 3 cent vegetable sales last Christmas; the way he plans to address this issue; and if he will make a statement on the matter. [26597/14]

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Written answers

The Programme for Government contains a commitment to regulate certain practices in the grocery goods sector and this will be met by way of enabling powers to regulate certain practices in the grocery good sector. These are contained in the Competition and Consumer Protection Bill which is currently before the House.

I am strongly of the view that it is 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 agri-food and retail sectors, particularly given the importance of these sectors to the national economy. Regulation of certain practices in the grocery goods sector 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. Certain practices in the grocery goods sector will be regulated by way of Statutory Instrument which I will introduce in the form of a series of regulations after the Bill is enacted into law.

The new Competition and Consumer Protection Commission will have responsibility for the implementation and enforcement of these regulations However, it must be pointed out that in enforcing any regulations, the basic tenets of fair procedure and natural and constitutional justice must be upheld.

Finally, it is important to note that the introduction of any regulations does not, and cannot, guarantee anything in relation to the prices received by any given link in the supply chain. Negotiations on price will remain an issue between the contracting parties as happens in any commercial relationship. What the new regulations will be intended to achieve is to regulate certain practices, not set prices.

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