Written answers
Tuesday, 27 June 2006
Department of Enterprise, Trade and Employment
Grocery Industry
11:00 pm
Jerry Cowley (Mayo, Independent)
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Question 319: To ask the Minister for Enterprise, Trade and Employment if his Department has examined the supermarket chains to ensure that they are passing the benefits of the abolition of the Groceries Order onto the general public; and if he will make a statement on the matter. [24358/06]
Micheál Martin (Cork South Central, Fianna Fail)
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The Groceries Order was in place for 18 years and in that time it fundamentally altered the structure and composition of the grocery trade. While I do not think we should expect to see fundamental changes in the sector in the short term following the abolition of the Order, consumers are nonetheless seeing early benefits with one multiple announcing its intention over the coming months to reduce prices of products previously covered by the Order.
I believe, however, that the real benefits will be felt over time as more competition emerges at retail level in the trade. This will create a downward pressure on prices from which consumers will ultimately benefit.
I have asked the Competition Authority to closely monitor the grocery sector over the coming months and years, not least to ensure that the benefits of removing the Order are not thwarted by the emergence of other anti-competitive practices. My officials have had some preliminary discussions with the Authority in this regard and will meet them regularly as the process develops. I have also asked the Authority to report periodically on the results of its monitoring and to make any recommendations it considers appropriate in the light of its findings.
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