Oireachtas Joint and Select Committees

Tuesday, 16 July 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Groceries Sector: Discussion with the Competition Authority and the National Consumer Agency

3:45 pm

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I thank the delegations for their presentations. It is appropriate the two agencies were the ones that concluded our hearings on the code of conduct for the grocery sector. They are both involved in protecting the public interest. This has got a European dimension to it now as there has been a response by retailers for a voluntary code at European level.

There are still concerns that voluntary will not work. It seems odd that we accept Fair Trade products benefit the supplier from a less developed country, as well as the consumer. Why can we not adopt the same approach of fair trade for the domestic producer? Waters have been muddied by claims that a code will be expensive. Arrangements, however, can be put in place for dominant players and smaller suppliers. Retail Excellence Ireland stated smaller retailers are at the behest of the dominant large suppliers.

While the principle is simple, greed is getting in the way. Margins are being taken by some involved who pretend they have the best interests of the consumer at heart when it is at someone else’s expense. I know of cases of retailers telling processors what their product will cost. At all times the margin is kept by the retailer. This is not addressed by the legislation in place. It is not in the best interest of the consumer. Deputy Tom Barry highlighted the case that when milk prices for farmers fell through the floor, the same high prices were maintained in the shops. There is a milk price war going on. Another dimension to it is that much of the product is being sourced north of the Border. The concern is that Ireland may be left without a secure supply of fresh milk. Considering we export it, there is a certain irony in that.

On foot of these meetings, we will establish a small working group of committee members to prepare a report and, hopefully, publish it by the end of September. That is a tight deadline given the August break here. We hope the consumer and competition Bill, when it is published, will have the benefit of our findings and recommendations.

We cannot fight major multiple retailers in a publicity battle. However, we can lay bare the facts of pricing despite the gloss that is put on the issue at times. We are not trying to score points with these hearings, just to expose the facts. We are trying to protect the consumer, the processor and the primary producer at all stages. It is called fair trade and fair play.

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