Brian Ó Domhnaill (Fianna Fail) | Oireachtas source

I welcome the representatives of Lidl. It is important to have this conversation, as Lidl is emerging as a dominant player in the Irish retail grocery trade, a fact many consumers welcome, as it is bringing competition into the sector, which can only be good. I have looked through the voluntary code of conduct it has established and it appears to be extremely vague. There is no detail. I am sure, however, that there is more documentation available than what is stated on this single sheet. It seems to include a number of points, but it is extremely vague. There is nothing in it on below-cost selling, for example. I am sure that Lidl would not engage in below-cost selling, but there is nothing to state it is not taking place within the company. The code contains nothing on payment details and when suppliers will be paid. Will they be paid after 30 days or 60 days? What is the commitment given to suppliers?

The code of conduct contains nothing on listing fees for inclusion in the brochures Lidl produces. If one is providing a product for Lidl Ireland and it appears in the brochure, I assume there is no additional cost to the supplier, for example, Donegal Creameries. How are these products selected? There is no such detail in the code. Obviously, if a product is listed in the brochure that is issued every week, it will prove beneficial to sales of that product through Lidl outlets.

There is nothing in the code of conduct about the process of de-listing products, both in the brochure and stores. There is nothing about slotting fees. I am not saying such practices are followed in Lidl Ireland, but one would expect such items to be listed in a code of conduct for dealing with suppliers. At first glance, the code appears to be extremely vague. I suppose, however, that it is a step in the right direction and other retailers should be following Lidl. The ideal scenario would be to have a voluntary code of conduct agreed with all grocery multiples and to have it implemented. Of course, that was not possible and the Government has no option but to go down the road of a regulatory code and bringing forward primary legislation to enforce it.

Senator Pat O'Neill touched on the issue of cost. Across the EU 27 there is an additional cost of 18% on grocery items purchased by consumers in this country. I would be interested in Mr. McGrath's views on why this is the case and whether Lidl Ireland publishes the profits it makes here. Instead of publishing global profit figures, does Lidl publish Lidl Ireland profit figures and, if so, how do they compare with those in Germany, France, Portugal, Spain and other countries? What is the profit margin in the various countries?

The beef controversy was referred to. To be fair to Lidl Ireland, it promotes Irish beef; there is no question about that.

I am not sure how many products Lidl actually stocks in Ireland. What percentage of these are Irish? What percentage are imported? Secondary processing takes place here and that is referred to in the two labels the delegates have produced. The delegates may not have the figures to hand. If they have them, I would be interested in hearing them.

Some 70% of the Irish groceries trade is attributable to the three top stores, which include Tesco and Dunnes Stores. I am not sure what the third is, and I believe Lidl comes fourth. Lidl is doing very well and its standing is increasing, which is only to be welcomed. What are the delegates' views on the fact that three multiples are responsible for 70% of the trade? Is that healthy? I am sure the answer will be "No". With regard to the profit margin in Ireland versus other countries and the percentage of Irish manufactured produce sold in Lidl stores, has Lidl any policy on supporting Irish jobs through the products it buys? What percentage of the branded products sourced by Lidl are imported? We know 45% is the figure for all branded products coming into the State that are sold in our retail stores.

Through what loopholes must Irish suppliers go to supply Lidl Ireland? Is there a policy of actively sourcing new suppliers? Is it difficult for a supplier to supply Lidl? Obviously, food safety and product safety issues arise. Is there an aggressive policy to engage actively to seek new suppliers within the Irish food and drinks chain?

Lidl’s marketing literature is excellent. Every household in the country that receives it examines it. Lidl's active promotion of Irish products is to be encouraged and welcomed. However, the only reason it is doing so is that the majority of Irish consumers want to buy Irish products. They cannot afford to buy them at all times but Irish mothers, fathers and families want to buy them if they can afford them. The delegates have picked up on that. Non-Irish stores, such as Lidl and its cousin, Aldi, are certainly trying to ensure they are promoting Irish produce and, in so far as it is possible, buying Irish products.

It always strikes me that in towns to which Lidl or Aldi comes, the other follows. Is this a strategy or a case of following the big brother? I do not know what is occurring. I am always intrigued that when one comes, the other follows. Perhaps there is a reason; I do not know.