Dan Wallace
Ceist:23 Mr. D. Wallace asked the Minister for Enterprise and Employment his views on the negative consumer impact of excessive variation in the retail pricing of essential food products. [4658/96]
Written Answers. - Food Products Pricing.
I would refer the Deputy to the Restrictive Practices (Groceries) Order, 1987 which prohibits below cost selling of many grocery products, including essential foodstuffs. The order, which remains in force, also outlaws the payment or receipt of what is known in the grocery trade as "hello money", which could constitute an inducement to stock and place on sale a particular product in preference to those of competitors.
I have consulted the Director of Consumer Affairs, who is responsible for the enforcement of the groceries order, about the claims by the Deputy in relation to excessive variations in the retail pricing of food products. The director has informed me that he is not aware of any such variation as regards essential foodstuffs.
My primary concern is to ensure that competition works effectively in the provision of goods and services on the Irish market and that competition is fair and rebounds to the benefit of consumers by providing greater choice, improved quality and lower prices in particular. In this connection, I should say that I am not satisfied that existing competition law is operating to the best effect. In my view, it is not geared to tackling anti-competitive activity, because of the lack of public enforcement and inadequate penalties for breaches of the law. I would add that, in line with the policy agreement for Government, I propose to strengthen competition law, through the Competition (Amendment) Bill, 1994, by giving the Competition Authority powers of enforcement and by enabling the courts to impose stiff fines on those found to be engaging in unfair competition. I intend to seek to have the Bill, which has completed Committee Stage in the Dáil, enacted at an early date.