Oireachtas Joint and Select Committees

Tuesday, 5 March 2013

Select Committee on Agriculture, Food and the Marine

Retail Sector: Discussion with RGDATA and Retail Ireland

4:00 pm

Photo of Thomas PringleThomas Pringle (Donegal South West, Independent) | Oireachtas source

I thank our guests for their presentation. I have a couple of questions regarding the Competition Authority and the report it published in 2009. Given that four years have passed, perhaps it is time to publish a new report on competition in the retail sector. It is interesting to note the authority's statement to the effect that it cannot carry out investigations because of a lack of staff and resources. This begs the question as to whether there is any point in the authority remaining in existence. Our guests have indicated that because the authority stated this, there is no problem in the retail sector. As Deputy Éamon Ó Cuív indicated, however, we have all been informed of instances where difficulties or problems have arisen, particularly in the context of the abuse of their dominant position by certain retailers. The fact that prices have fallen does not necessarily mean anti-competitive practices are not being used, neither does the fact that there have not been convictions. All this indicates is that these matters have probably not been investigated.

Our guests have also referred to the EU voluntary agreement which is due to come into place later in the year and highlighted the disadvantages of a code of practice, namely, that issues relating to legal advice, training compliance officers, etc. would act as barriers to the introduction of such a code. Surely these would also be required under the voluntary code. If retailers are going to comply with such a code, they will be obliged to put in place systems to ensure compliance. That which our guests have made is, therefore, not really not an argument against the putting in place of a code of practice. If a voluntary code is such a good thing and it is going to work, a statutory code should not prove to be too great a burden for the retail sector to bear.

I am suspicious of voluntary codes, particularly as such codes applied in the banking sector and elsewhere in the past. Those codes did not work well. A code of practice is necessary. The cost of complying with such a code would also apply in respect of a voluntary code. What are Retail Ireland's members doing to ensure they will be in a position to comply with such a code? Which of those members would be expected to sign up to and implement the voluntary code in the coming months?

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