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Dáil Éireann díospóireacht -
Tuesday, 22 Nov 1983

Vol. 346 No. 1

Ceisteanna—Questions. Oral Answers. - Grocery Trade.

10.

asked the Minister for Trade, Commerce and Tourism the steps he proposes to take to stabilise the grocery trade, with particular reference to shopping centre development; if he is aware of the often unfair competition that exists in the trade and of the diminishing number of family retailers; if he agrees that there is need for more detailed control over the distribution and retailing of food in Ireland; and if he will make a statement on the matter.

11.

asked the Minister for Trade, Commerce and Tourism when he proposes to introduce legislation to restrain the uncontrolled expansion of multiple retail outlets in this country; the steps he proposes to take to protect the independent food retailers case for fair trading; and if he will make a statement on the matter.

12.

asked the Minister for Trade, Commerce and Tourism the steps he proposes to take to protect the shopping public from the worst effects of the supermarket price wars and price manipulation referred to in a recent National Prices Commission report; and if he will make a statement on the matter.

I propose to take Questions Nos. 10, 11 and 12 together.

I am aware of the views which have been expressed in recent times by organisations representing wholesalers and independent retailers in the grocery trade concerning difficulties being experienced by them and suggesting that measures should be taken to limit the development of supermarket multiple groups.

I have had discussions and meetings with the various interests involved in the grocery trade including retailers, distributors, multiples and manufacturers and expect to be in a position to make a statement on the matter shortly. I wish to make it clear that in coming to conclusions on these matters my mind will be influenced primarily by the interests of the ordinary consumer whose welfare depends so much on the maintenance of an efficient distribution system.

I am sure the Minister is aware that four multiples control about 80 per cent of the total food retail trade in the city and about 50 per cent of the national food trade. Is the Minister aware that, since 1966, about 6,500 independent small retailers have gone out of business? Is he aware that some 10,000 jobs were lost because of the increased potential of the multiples to take control of the trade? Will he give us an immediate assurance that he will take the necessary legislative steps to deal with this?

The only assurance that I give is that contained in the formal reply to the request.

Is the Minister aware that overinvestment by the multiples referred to is causing a considerable number of job losses in the retail trade and virtually bringing about an undesirable situation of monopoly for companies which are wholly or partially owned outside the State? Will the Minister take immediate steps to rectify the situation?

The statements made by the Deputy are not necessarily in accordance with the facts. While there is, and has been for some time past, a difficulty for small business people in the grocery trade, I have met all the interested parties concerned. I have had discussions with them and, on the basis of these discussions and with the overriding consideration of the interests of the consumer, I shall be making a decision in the near future regarding this matter.

This refers perhaps to Question No. 11 in particular, but is the Minister aware of below cost selling which is outlawed in virtually every country in Europe? While it is not permissible here to advertise below cost, there is no restriction whatsoever on selling below cost. Will the Minister not give an assurance to the House that he will take the necessary steps and ban below cost selling here?

I have nothing further to add to what I have already said to the Deputy in reply to the question.

Is the Minister telling us that he is scrapping the legislation which was intended to be introduced by Minister John Kelly when he was in the Minister's position in the previous Coalition Government? Is he also scrapping the commitments made by his erstwhile partners in Government, the Fine Gael Party, to the IADT and the other groups involved in the small businesses?

What I am saying to the House is that I have had full discussions with all the interested parties involved in this area. After careful examination of all the relevant facts, I will be making a recommendation to the Government in the near future.

A final supplementary Deputy, please.

Discussions have already taken place with all the parties concerned. The Fine Gael Party made a commitment in Government. They introduced a Private Members' Bill here prior to 1981.

A question, please, Deputy.

Is the Minister now reneging on that commitment made to the small shopkeepers?

The logic of the Deputy's line of questioning is that Fíanna Fáil should eventually get around to draining the Shannon.

(Interruptions.)

A final supplementary from Deputy Flynn, please.

Would the Minister agree, from the information available to him, that considerable price manipulation is being perpetrated by the multiples? Will he agree that this is confusing? One specific example was the importation of £10 million of poultry last year by a certain chain when we have overcapacity in that industry here. That is an indication that immediate steps are demanded of the Minister.

I am sure the House will appreciate that I am denied the luxury accorded to Deputy Flynn of plucking figures out of the air and stating them as facts and also of making statements which cannot necessarily be substantiated. Any manipulation would be a matter of serious concern to me and, if Deputy Flynn has any specific information regarding such, I would be only too pleased to take appropriate action.

Question No. 13.

These figures were made known to the Minister.

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