Mr. Niall O'Connor:

I wish to add to what Mr. Mackay said about the code of practice. Deputy Thomas Pringle has inquired as to what comprises the cost in this regard. The main constituent is our reissuing every contract into which we have entered with our suppliers in a new form in order that we would be compliant with the new code of practice in the context of the details we would be required to include in contracts under that code. There would also be significant legal costs. As we understand it, the code, as drafted, would give rise to significant training costs. There would also be ongoing training costs on an annual basis. There would also be reporting costs. In such circumstances, there would be significant administrative costs that would absolutely arise as a result of the introduction of a code of practice which we currently do not have to meet. As stated, however, we would comply.

There is no question in that regard but if extra costs have no benefit, why would we want to add them? Mr. Mackay may comment on the same point.

In terms of the annual tender, the Deputy asked whether a contract that was set for a year with a supplier lasted for the entire year or if there were circumstances in which its terms could be changed, specifically cost price. Yes, a contract can be changed in both directions, upwards and downwards. We actively participate with our suppliers on a weekly basis. If circumstances in the market change so dramatically that sourcing a product becomes unsustainable, we will revisit the issue with our suppliers. We have 1,350 products. We offer one tomato ketchup product whereas the multiples offer five different brands in four sizes. If one is missing, the consumer will take something else. If we do not have our tomato ketchup, we lose business. We do not need many of our lines to be absent before customers start believing that they cannot get everything they need from us. It is in our interest to have sustainable relationships with our suppliers so that we can have a sustainable delivery of our product. Where necessary, we repeatedly interact with our suppliers to ensure that we can offer them a fair cost price and, therefore, charge a fair price to the consumer.