Dáil Éireann díospóireacht -
Wednesday, 15 Mar 1995

Vol. 450 No. 7

Written Answers. - Anti-Competitive Practices.

Desmond J. O'Malley

Ceist:

24 Mr. O'Malley asked the Minister for Enterprise and Employment the steps, if any, he intends to take to ensure that our competition law is capable of addressing anti-competitive activities such as hello money and predatory price wars which have been a problem in the grocery trade; and if he will make a statement on the matter. [5636/95]

Minister for Enterprise and Employment (Mr. R. Bruton)

The Restrictive Practices (Groceries) Order, 1987 prohibits the payment or receipt of "hello money" and below-cost selling of many grocery goods.

I announced recently that I have decided to retain the Groceries Order for a period of two years. I believe the retention of the order is necessary because competition law, as it now stands, is ill-equipped to tackle anti-competitive activity in the grocery trade. The lack of public enforcement and inadequate penalties for breaches of law are fundamental deficiencies in the existing competition regime. I propose to amend the Competition Act, 1991 to deal with these defects in line with the policy agreement for Government, which provides for the strengthening of competition law by giving the Competition Authority powers of enforcement and by enabling the courts to impose stiff fines on those found to be engaging in anti-competitive activity. When this legislation is on the Statute Book and in operation for some time I will consider the matter further.