Vol. 449 No. 7
207 Mr. Molloy asked the Minister for Enterprise and Employment if his attention has been drawn to the action of a company (details supplied) in selling milk at below the average retail price; and the action, if any, he proposes to take in the matter. [4505/95]
I am not aware of any specific problem in relation to the matter raised by the Deputy.
Price control generally was abolished in 1986 with the disbanding of the National Prices Commission. Currently there are no statutory price controls in operation. The emphasis of successive Governments since 1986 has been to promote competition and encourage greater consumer awareness of prices. In this regard the Competition Act, 1991 sets down the legal framework necessary to protect the market and to promote the principles of free and fair competition. Consumers have an important role to play and should be sensitive to the range of prices on offer and make their purchases accordingly.
The Government is pledged to strengthen further the operation of competition policy by giving the Competition Authority enforcement powers, and imposing strict penalties for proven anti-competitive behaviour.
The Restrictive Practices (Groceries) Order, 1987 prohibits below cost selling of many grocery products including milk. Below cost selling is defined in the order as "below net invoice price". The Director of Consumer Affairs is responsible for enforcing the order and has the power to investigate complaints of alleged breaches of the order.
I have recently decided to maintain the groceries order for another two years.
This will allow the order to continue in place until the amendments to the Competition Act have been in operation for some time.
