asked the Minister for Industry and Commerce if he is aware that the average mark-up on fruit and vegetables in supermarkets is 43 per cent and that in some instances it is 100 per cent; and if he has any plans to reduce such excessive margins.
Ceisteanna—Questions. Oral Answers. - Fruit and Vegetable Prices.
65.
The National Prices Commission in March last published an occasional paper on the marketing of fruit and vegetables in which the margins referred to by the Deputy are mentioned. The commission stated in their report for April last that they proposed to invite the main supermarkets, the Federation of Trade Associations and RGDATA to comment on these conclusions. The organisations mentioned have since been invited to furnish their comments, and when these are received, the commission will be making recommendations to me as to whether I should use my powers under the Prices Acts to fix maximum retail margins for fruit and vegetables.
The Deputy will be aware that the effect of the Prices (Stabilisation of Profit Margins of Retailers) Order, 1973, which I made on 26th June, is to fix the retailer's margin on fruit and vegetables at the cash margin taken on 23rd June, 1973. Accordingly, any future increases in prices of fruit and vegetables should result in reductions in the retailer's percentage margin.
I am glad to learn from the Minister that the commission do intend to probe this matter further. I would just like to ask the Minister to keep a very vigilant eye on this whole situation, perhaps not necessarily to wait for further investigational steps by the commission, because his order to which he referred in the latter part of his reply I am afraid freezes the existing margin at 43 per cent.
No; it freezes it in cash terms but there is a continuous decrease in percentage terms.
Only if the price goes up.
If the price goes up, yes
What I am concerned about is that supermarkets and other retail outlets would not be convinced that a 43 per cent mark up on 30 per cent rate of profit is to be the norm for the future.
I entirely share the Deputy's concern. The matter is having continuing attention. He will appreciate that it was the April report that came out at the end of that period and I need to have some opinions and advice before moving further.