Mr. Stephen Lynam:

On the question of why a European code is better than a national one, there is one simple answer, namely, that it would put no Irish supplier or retailer at a disadvantage against their European counterparts. That is a simple premise and it is one we fully support.

Frank Gleeson outlined many of the principles which are regarded as beneficial to a sustainable supply chain. The difference is that retailers and suppliers have worked together to develop an implementation framework for those principles which will be significantly less costly than the proposals made at national level some years ago. An independent adjudication group would be set up with options for dispute resolution, a procedure to deal with aggravated and anonymous complaints, a governance group to monitor the new system and also sanctions for breaches of the principles.

I refer to a question about actions being taken by Irish retailers to ensure they are ready. This is being facilitated by EuroCommerce, our European trade association. A series of meetings will take place in March at which retailers will be briefed on the nitty-gritty of how the new voluntary approach will work. Early adopters and signatories will come on stream in March and April. This system is currently being introduced across the European Union by major retailers and suppliers. It would be premature to introduce a national code that would supersede the system and put an unnecessary administrative and cost burden on the retail sector at a time when costs are being cut back to the bone and consumer spending is falling. The retail sector across the European Union has said that if stakeholders at any level are of the view after a year or six months that this system is not working, it will be reconsidered. The European Commission is involved in that process too. We think we have developed a good system with suppliers that will protect consumers and also suppliers and retailers throughout the Union.