Oireachtas Joint and Select Committees

Tuesday, 1 October 2019

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Competition Law and Trade Associations: Discussion

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank the Chairman for giving me the opportunity to put some questions to the delegates from the Competition and Consumer Protection Commission today. Like Deputy Cahill, I will concentrate on the issues that have arisen recently in the beef sector. Following our discussions on the future of the beef sector, which included a meeting with the delegates last May, the number one recommendation from the agriculture committee was the need for a sectoral regulator. There was a view that the CCPC does not have enough power to deal with the specific matters that are emerging.

The unfair trading practices directives which are being transposed into Irish law are seen as a first step. What is the timescale for that? The process began in April or May of this year at European level. How long will it be before what has been passed into European law will come into being in Irish law?

We have had a lot of conversations in recent months about retailers, particularly the large multiples. At Christmas time in the past, large multiples used to use certain items as loss leaders, in particular agricultural or horticultural products. In the most recent case, carrots were basically being given away in order to attract customers in. What power does the commission have to deal with that sector, if any? It is a very unfair trading practice but we see it on a regular basis in the milk industry, where the same carton of milk will have ten different prices in ten different supermarkets while the primary producers are getting the same price at the farm gate. Did the commission carry out an investigation into the carrot issue? How did it turn out? Across the water, a regulator has been appointed and she is coming to Ireland in the not-too-distant future. One of her first roles was to take on one of the large multiples, which she did successfully, after they were found to be engaging in similar practices. Is a regulator required in that space here?

The demerger issue was raised by Deputy Cahill and Senator Mac Lochlainn. If another processing facility came up for sale and one of the main players decided to purchase it, what is the process the commission would have to go through to ensure the sale went through without competitive advantage for somebody in the marketplace as a result? Does it have to go to Europe? Would the commission have to recommend it go to Europe? A processing facility is, indeed, for sale at the moment and there is speculation about who may or may not buy it. It will not be an ordinary businessperson because no businessperson has got into the sector in recent years to make money out of it. It will most likely be one of the main players in the sector.

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