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Dáil Éireann díospóireacht -
Tuesday, 9 Dec 2003

Vol. 576 No. 5

Written Answers. - Grocery Industry.

Seán Crowe

Ceist:

154 Mr. Crowe asked the Tánaiste and Minister for Enterprise, Trade and Employment the identity of the persons, including members of the Oireachtas and organisations which have made representations to her or members of the Department in either written or oral format, in regard to the review of the 1987 groceries order. [30059/03]

Seán Crowe

Ceist:

155 Mr. Crowe asked the Tánaiste and Minister for Enterprise, Trade and Employment when she will complete her review of the 1987 groceries order; if she will publish the review when it is completed; and if she will allow for consultation on the outcome of the review and recommendations that might be made. [30060/03]

Seán Crowe

Ceist:

156 Mr. Crowe asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether the lowest food prices in the EU are found in those states that have a ban on below cost selling; and if, as part of her review, she has made comparisons with food prices across the EU and the impact that a ban on below cost selling might have on such prices. [30061/03]

Seán Crowe

Ceist:

157 Mr. Crowe asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether food price inflation here is substantially less than the annual inflation rate. [30062/03]

Seán Crowe

Ceist:

158 Mr. Crowe asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether the removal of the 1987 groceries order and an end to the ban on below cost selling might have serious negative consequences for smaller shops and businesses in local communities. [30063/03]

I propose to take Questions Nos. 154 to 158, inclusive, together.

I am continuing to monitor the operation of the groceries order and I acknowledge that there has been a recent change in the economic climate with inflation now at 2.3%, the lowest level since November 1999, and food inflation down to 0.6%. However, while I welcome this development, there is also clear economic evidence to suggest that food prices in Ireland are higher than in most European countries.

Whether the groceries order has contributed to higher food prices, it is still a complex area. For example, supporters of the order claim that price inflation is higher on items not covered by the order compared to those items covered by it. On the other hand, those seeking the removal of the order suggest that it facilitates resale price maintenance and that prices are probably higher than they otherwise might be.

Furthermore, I recognise also that many EU member states have measures similar to the groceries order with restrictions on below cost selling. It is difficult to establish whether there is any correlation between food prices and the presence or absence of below cost selling restrictions in other member states. I am also aware from the correspondence I have received of the concerns of smaller shops. I believe that these outlets offer a valuable service to local communities in providing a convenient alternative to the multiples. I will continue to take the views of all interested parties into consideration and I will make a decision in this matter as soon as possible.

I have already received a significant amount of correspondence from interested parties, including members of the Oireachtas, on the consultation process. I have arranged for my officials to prepare a schedule of those parties who have made representations and this will be forwarded in the near future.

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