Andrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I welcome the introduction of the Competition and Consumer Protection Bill and I commend the Minister on the work he has done in respect of it. The Bill has been quite some time in gestation and I understand that certain difficulties and challenges arose in the context of dealing with the technical aspects relating to it. None the less, the Bill, which was placed on the A list at the start of last year's autumn session, is now before the House. Five years ago Deputy Creed and I published the Food (Fair Trade and Information) Bill, which specifically dealt with the grocery sector. I am glad that the Bill before the House incorporates many of the guiding principles contained in our legislation.

The Joint Committee on Agriculture, Food and the Marine produced a report last October entitled Report on the Grocery Goods Sector: Increasing equity and transparency in producer-processor-retailer relationships. I commend my fellow committee colleagues for their support and input into the drafting of that report and those who came before the committee to offer testimony. Not all of them would agree with our conclusions but at least they showed up, unlike one of our large domestic multiples, Dunnes Stores, which decided to ignore an invitation and that was a pity. None the less, the committee recommended a statutory code with an adjudicator or ombudsman. It was envisaged that this office would not be created at any cost and that it would be contained within the merged entity which is now going to be called the competition and consumer protection commission.

As Deputy Pringle noted earlier, the Joint Committee on Agriculture, Food and the Marine had some concerns about the general thrust of this legislation, in particular the fact that everything was being done by regulation. We received a briefing from the officials - I thank the Minister and his officials for that briefing - and we are satisfied that this is, in fact, a stronger and more enforceable methodology to ensure that the objectives of the Bill are carried through.

The Bill sets out that all relevant undertakings in the grocery food sector should be guided by regulation. The list is extensive although not exhaustive. The Minister and his officials made it clear that because the circumstances can move or be fluid, there was a necessity to ensure that the regulations could be nimble and that they could be amended easily to reflect any changes. The position is similar to when budget measures are introduced and people find loopholes. The recommendation was that a corresponding ability should be incorporated into the regulations and the Act.

I welcome that the formal contract must be in writing, as must the circumstances or reason why it is being terminated, varied or renewed. The circumstances under which a contract of a supplier of goods may be varied must be in writing. There are further arrangements regarding promotion of the grocery sector, including arrangements for the preparation of annual compliance reports in respect of these regulations by relevant grocery goods undertakings and the submission of the reports to the competition and consumer protection commission, CCPC, as well as provision for the maintenance of records relating to the compliance activities for the period for which those records are to be held. These are all welcome measures. They will ensure once the new commission is established, the legislation is passed and the regulations are signed that there will be powers of compellability and criminal sanction given to the new CCPC. This is important in spite of some of the protestations of the major multiples and Retail Ireland to the effect that this would add costs ultimately to the consumer.

Last week, I attended another meeting to do with general practitioners in which a well-known media financial consultant said we were doing it all in the interests of saving €170,000, a rather unfortunate observation from someone who proclaims to be an expert. He suggested that we were simply going through the motions of merging two agencies to save €170,000. That is not the purpose. The individual decided that he would advocate that position in the full knowledge that few people in the room actually understood what was going on because they had their own issues to deal with.

Deputy Calleary and others referenced minimum pricing of alcohol. A working group is deliberating on the minimum price per unit of alcohol and this is to be welcomed. I suggest that the regulations should include a requirement that alcohol should not be used for marketing or promotion, whether it is below-cost or over-cost.

Fully 80% of our groceries are sold through the big five multiples and probably a similar percentage of our alcohol off-licence sales are sold through the outlets with 80% of the market. Our off-licences which, in the main, do not sell anything else, account for the remaining 20%. There are also some sales in filling stations, etc. It seems that every weekend newspaper has pricing for various goods that are available in the following week in a given store. Invariably, there will be a price for various carry-out offers for alcohol, whether beer or wine. That is unfortunate because generally they are loss leaders. This should not be allowed in the interests of public health apart from anything else. This, combined with a minimum unit price for alcohol, would be effective and I am keen to hear the Minister's thinking on the matter.

I welcome the fact that the Minister realises the regulations must be made quickly. Although there is a reference to May, I am satisfied that the intention is to bring them in as soon as possible. I understand they are being drafted at the moment. There are different scales. The regulations acknowledge the fact that there is a particular model of retailer, that is, the franchise holder. Some of the franchise holders are as big as some of the comparable stores but others are small, no bigger than the operators that RGDATA represents. Is it possible on Committee Stage or Report Stage to discuss a way of ensuring that these stores are not unduly burdened? I am referring to small operators, perhaps a single entity or stand-alone franchise operated on a small scale. Any support measures from the point of view of compliance to reflect the level of activity and turnover would be welcome. This is something we might usefully discuss.

Deputy Calleary referred to the disclosure of profits. I understand there are various reasons relating to foreign direct investment why one would not be keen for multinationals to disclose their profits but there is a specific group to which this point applies. According to today's newspapers we should almost feel sorry for one of the biggest retailers in the world, whose profits went down from €3.5 billion to €3.3 billion. The company is paying out over 14 cent per share. Perhaps that could be used as the reason why we should not have stronger regulations. It would be helpful to know the extent of profits to level the playing pitch. Small suppliers and producers find it difficult to generate collective bargaining power and they have always had this problem. The new CAP will allow for the formation of co-operatives or producer groups. This is recognised not only at Irish level but at EU level and I am keen to hear the Minister's thoughts on that.

I welcome the fact that the Bill deals with media mergers. It is high time that when media mergers are about to take place the parties notify the relevant Department. I welcome the fact that the Department of Communications, Energy and Natural Resources will have a proactive part in this process.

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