James Bannon (Longford-Westmeath, Fine Gael) | Oireachtas source

I acknowledge the presence of the Minister for Jobs, Enterprise and Innovation. I thank him for being in the Chamber for this debate. These debates are often left to Ministers of State. The Minister, Deputy Bruton, is always in the Chamber for debates on legislation relating to his portfolio. That is very welcome. This Bill is the latest effort to balance consumer protection with competition. It shines a light on the debate over whether large retailers bully their suppliers. Those of us who live in rural Ireland pride ourselves on our local grocers and corner shops. We trust them to deliver a better product than the faceless supermarket chains. I regret to say that the local corner shop is slowly ebbing away as the supermarket sector monopolises the market.

The people have continually driven forward, as it were, since the crash in 2008. We have worked hard over the past six years to get to where we are. This country is now creating more than 1,000 jobs a week, rather than haemorrhaging them by the day. According to the ESRI, this country has one of the highest predicted growth rates in Europe at present. I believe no other country could have done what Ireland has done. I attribute this to a unique feature in Irish society, namely, our sense of community, which has driven us forward. People throughout the country have worked tirelessly to get Ireland back on track, not because Germany told them to do so, but for the sake of their neighbours across the road and their local grocers on the main street. Local communities have been and are fighting to keep their towns and villages alive. It is disheartening that the heart has been taken out of the main streets of many towns in rural Ireland as a result of the development of supermarkets on the outskirts of those towns.

I refer to my local county town, Longford, in this context. I took the time in recent days to count how many establishments or outlets in the town have closed in recent years. I found that 63 outlets have closed, one third of which were grocery shops at one time. The local grocer is essential to communities and must be helped and supported. The same thing can be said of the local post office. Indeed, they are often one and the same. Big grocery retailers are making massive profits in Ireland. One of the main reasons for this is their dominance over smaller suppliers. Small suppliers invest locally, whereas the large supermarket chains that make these massive profits invest outside of Ireland.

Before Christmas, farmers protested throughout the country against the below-cost selling of vegetables, a practice which is more commonly known as "loss leading". Farmers gathered in protest outside big chain supermarkets throughout the country and outlined their demands for change, signalling a warning to the Government to act to protect their interests. By selling below cost, the big retailers drive down the prices paid to growers. This issue needs to be monitored and addressed by the Government. I suggest that this sort of behaviour is driving many young farmers off the land.

The practice of looking for "hello money", whereby payments are levied by retailers on suppliers to get onto their shelves, is now outlawed. The big retailers have found ways to get around this ban, however. Many of the marketing charges and promotional fees levied by retailers to cover the cost of price cuts are seen as a new form of "hello money" by another name. The Bill before the House will regulate the grocery sector and ensure there is fairness between suppliers, retailers and consumers on issues such as contracts and the delivery of goods. New legal requirements for record-keeping and the inclusion of certain terms in written contracts, together with strong enforcement powers, would ensure fairness and sustainability in this sector.

The Bill will create a new, powerful watchdog that has the strength effectively to protect the Irish consumer. The National Consumer Agency and the Competition Authority will be merged to create the competition and consumer protection commission, as outlined in the programme for Government in 2011. The Minister and his Department have been working tirelessly since then to bring the Bill to fruition. The new watchdog will be given criminal investigation functions to combat serious white collar crime and ultimately combat higher prices and protect consumers. It will have a full 360 degree perspective on consumer markets in Ireland, allowing it to strengthen further the environment for consumers.

Anti-competitive practices are damaging both to consumers and the wider economy. The ultimate aim of the new body will be to ensure open and competitive markets where consumers are protected and empowered and businesses can actively compete. The newly merged body will result in savings of €170,000 annually. Its establishment is another aspect of the Government's fulfilment of its role to protect citizens' rights. It is important that large retailers are not allowed to cheat consumers out of those rights.

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