Pat O'Neill (Fine Gael) | Oireachtas source

I thank the representatives of Lidl for coming and acknowledge their support of locally produced product, especially in my part of County Kilkenny.

I wish to return to some of the points made because I am not satisfied with some of the answers given. I support Deputy Barry on the following point. The consumer needs to know from where a product comes and where a product was produced. In this regard, Lidl's two labels are alike. How aware are its customers of the position, that "produced in Ireland" means that a product is produced in Ireland but that all of the ingredients may not be Irish, whereas "produce of Ireland" means it is 100% Irish? I suggest Lidl make a slight change in its labelling by using colour. Lidl's brochure is well produced - at least, the print business is doing well.

The first issue I will take up is where Donegal Dairies supplies milk. It is just as well Mr. McDonnell has clarified that this refers to the 1 litre product. I remember seeing a 2 litre Morning Fresh carton at home with the words "produce of the UK" on it. Is this not misleading?

Senator Mary Ann O'Brien and others hit on the following issue. All retailers use a fresh product such as milk which is used in 99.9% of houses in Ireland as a market leader, where their own brand is at a far lower price than that of named brands such as Avonmore or Dairygold. Up until recently, suppliers were getting 33 cent a litre. However, the price of liquid milk increased to 35 cent a litre, although it costs 43 cent a litre to produce it. Lidl has a duty to ensure its suppliers are kept in business. If not, all of its products will have to be imported, from the United Kingdom, including Northern Ireland, or elsewhere because suppliers in Ireland will not be able to produce liquid milk at these prices.

I would be interested to hear Lidl's views - I have asked all of its competitors here - on the proposal made by the Government on the below-cost selling of alcohol and perhaps introducing minimum pricing in Ireland. For what percentage does alcohol account of Lidl's sales and does it use alcohol as a loss leader to attract customers?

On contracts, Lidl's presentation states it awards six to 12 month contracts and refers to "volatility" in terms of the primary commodity. The use of the word "volatility" scares suppliers. Does it give Lidl a right at any stage during the period of the contract to state it must reduce the price or where a supplier signs a six month contract with it - for instance, it was hard to harvest potatoes last year, which meant they were scarce and the price had to increase - is he or she entitled under this volatility clause to say to Lidl that he or she cannot supply it at the contract price?

EUROSTAT has produced statistics showing that the cost of food in Ireland is 17% to 18% higher than the European average. Lidl operates in 26 countries. Does this make Lidl Ireland one of its most profitable sections worldwide?

Lidl states 40% of its products are Irish sourced. Of the 40%, what percentage is fresh produce? Is it 90%, 80% or 70%?