Willie Penrose (Longford-Westmeath, Labour) | Oireachtas source

This committee has not been remiss in tackling this problem. When I was Chair of the Joint Committee on Enterprise, Trade and Employment in 2010, we held a full inquiry into this issue. The power the multiples wielded at the time was frightening. Their power was so substantial that even reasonably big businesses were terrified of putting their heads above the parapet. We hired a young researcher to interview people at night on the issue. The IFA was forthcoming with information at that time and it is now repeating what it said in 2010. We had a full conversation with the IFA then and it pointed out the inadequacies at the time.

The 2014 Act has been a missed opportunity. It is inadequate, will not work and is somewhat mealy-mouthed. One of the 80% multiple cohort does not treat its workers well, not to mind treating small businesses like growers very well. Some of its workers have been out on strike recently, due to variable contract hours and other issues. That same business dismissed this committee out of hand when it sought its attendance. It waved us away. The impression was that we are just small fry who should know our place in the queue and not be annoying it because its job is to make a profit, never mind how it does so. That type of behaviour is wiping out small shopkeepers and businesses. It is wiping out growers and producers, but also wiping out people further down the line. Small shopkeepers are important because they provide two or three jobs in their areas.

The multiples are not fooling consumers. I have been told that the multiples said they could supply a Christmas dinner and vegetables for approximately €1.25 per person, but consumers know that this is not feasible. Informed consumers did not fall for this marketing. However, one can understand that with money being scarce, as it has been over recent years, people will buy the cheapest products, particularly if they are of good quality.

The multiples are up to same old tricks again. They say there is no such thing as low-cost selling or that producers are not paying for the most advantageous shelf space. We were told before this does not happen. It is a bit like asking us to turn a blind eye and a deaf ear, where we hear and see no evil, but we all know these practices take place. Price cutters amplify growers' vulnerabilities. They are vulnerable and under threat when we aggregate all the factors involved.

We used to be told we should use the Competition Act to deal with these issues and that it provided a remedy to this situation. That was a load of nonsense because evidence had to be produced and people were afraid to come forward. I believe we need a system like that in Britain, a groceries' code adjudicator, and that is what the committee recommended in 2011. This is more or less the same as what was recommended by this committee under the Chairman, after an extensive review of the situation. We need the clout of law and need to be able to name and shame those who are not compliant. We also need to have significant penalties that can be imposed on those who engage in practices that will end with the destruction of a vulnerable sector.

Throughout the country everyone is rushing to the big stores. This will wipe out all smaller businesses and producers. We will then have crocodile tears. I will not participate in any more protests in the middle of the country or anywhere else, because the people who are there crying crocodile tears are the very people who pass by the rural post office or shop and only avail of them at night when they cannot get to the big store ten miles away. I am fed up with this situation. The people who contribute to this situation are the people who can stop it. The consumers have huge power here, so let us see what they do. We will end up with empty streets in villages with no shops except in major towns, but all we see are crocodile tears and politicians jumping on bandwagons and misleading people. The consumers can change the situation if a statutory code is laid down.

The situation now regarding what will happen is that people will go to the major multiples and retailers and the small shops will die. Then the multiples will wipe out small producers altogether as there will be no competition to which they can sell their produce. We know where we are heading and we know how to stop that. The only way to stop this is to bring in regulations. I am glad to see Commissioner Hogan is on-side on this, but he needs to go a step further and match rhetoric with action to ensure we sort out the issue. Otherwise we will end with a country where we have very little in rural areas and where all business is done in the bigger towns. There will no longer be local football, hockey or rugby teams. Locals schools and everything else will come under threat. We will not be around in ten years time to see that happen, but it will happen the mad rush towards multiples continues.

It is time to cry "stop". It is not just time to cry "stop", but time to act and to put mechanisms in place to stop what is happening. This Legislature has the power to contribute to that, but I sometimes wonder whether it is cowardly and afraid to take on the big boys. It is very easy to take on the small people and to put licences and all sorts of regulations in place that prevent them from getting out of their traps. Taking on the big boys is a different job and I wonder whether we have the political will to do that. I would not hesitate to support any measure to deal with the situation. If a Bill was introduced tomorrow to deal with it, I would be delighted to support it, because I am sick of what is going on. Recent events have made me even sicker. I wholeheartedly support the IFA's campaign.

Some of the delegates said to me outside that there is not much vegetable production in Westmeath. If they go down to Ballinahown or to Cloonown which is right beside us, there are good carrots there too.