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

I thank Mr. Mackay and Mr. O'Connor for their presentation. I have a couple of questions, the first of which relates to the code of practice and whether it should be mandatory or voluntary. As our guests are probably aware, the Government proposes to introduce a consumer and competition Bill which will include provision for a code of practice for the retail sector. As is the case with probably every other company which has made a presentation to the committee, the representatives from Aldi indicate that it is fully compliant with all the legislative and regulatory requirements which apply within the State. If all companies are already compliant and they are already incurring costs for being compliant, maintaining records, etc., I fail to see how implementing a code of practice would give rise to a significant additional cost. Perhaps our guests might indicate where the actual increases in costs might arise. If the various companies are so compliant, they must be incurring significant costs already. In such circumstances, imposing a code of practice would not give rise to an additional major burden.

Our guests have referred to the DNA testing which Aldi has initiated. Obviously, this will give rise to an additional cost. Given that the company is so sensitive to cost pressures, surely this is not something it would want to be doing. It is obvious, however, that there is no reluctance on the part of the company to carry out DNA testing. I fail to see, therefore, why there might be a reluctance to implement a statutory code of practice, if one were introduced. Perhaps our guests might tease out this matter a little further.

In the context of pricing and suppliers, it has been stated Aldi operates an annual tender programme. Does this mean suppliers can expect that prices they agree with Aldi will be maintained on an annual basis and that changes could not be made within the relevant 12 month period? What processes does the company have in place to ensure suppliers are kept abreast of what the price agreements are and does it have a policy on introducing changes to take account of fluctuations in price?

The final matter to which I wish to refer is not really germane to the subject matter of the meeting. However, it was mentioned on a number of occasions during the presentation. It is welcome that Aldi will be opening 20 new stores throughout Ireland. That is a positive and welcome development. Our guests have referred to how efficiencies are built into Aldi's business, how their stores can be run by 12 to 15 staff and how this is not achieved at a cost to employees. I understand Aldi does not recognise trade unions and does not allow employees to enter into collective agreements. The National Employment Rights Agency has indicated that 53% of companies inspected by it have failed in their obligations to employees. This is an indicator of how matters might be dealt with otherwise when a business does not recognise the right of its employees to join trade unions or when it does not have proper and agreed grievance procedures in place. If the latter is the position, it might indicate the way in which particular businesses might wish to deal with suppliers. Will our guests outline their views on union membership among their employees?