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
2:55 pm
Ms Isolde Goggin:
I will move quickly on, particularly as Ms Karen O'Leary will want to address a number of the issues raised.
A question was asked as to why grocery prices are higher. Ireland is 18% above the food average for the EU 27, 12% above the average for the EU 15 and 4% above the average for the UK. That is not good. The price differential has decreased considerably and this is partly due to people becoming more price sensitive and shopping around. In 2008 we were 34% above the average for the EU 27 and 62% above that for the UK. We identified a number of reasons for the disparity and these included the cost of doing business - including energy prices, rates, etc. - and consumer incomes and tastes. At that time there was major resistance to own-brand products and a huge adherence to established brands. People perceived the former as somewhat inferior. Two other reasons for the disparity were the level of competition - there certainly could be greater competition in the sector - and regulation.
One of the most astonishing aspects of the issue relating to horsemeat was how many people were obtaining a cut despite the low prices being paid. When the matter was investigated and efforts were made to trace those who had been involved in trading this product at some point, what emerged was extraordinary. This is the reason why the NCA and the Food Safety Authority of Ireland must be involved and why strict regulation is required. There can be no rowing back in that regard.
Senator Mary Ann O'Brien inquired about confidentiality. In the context of the latter, there is a tension between people who want to address the committee and what can actually be done. If we want to introduce penalties as well as a process of naming and shaming, then matters will end up in court. This is the difficulty. People have spoken to us in private and have been prepared to go as far as to say that certain practices have occurred. However, when it comes to moving matters along, we need to be able to confront people with the evidence. This has been the difficulty for us. I will now ask Mr. Patrick Kenny to comment.
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