Oireachtas Joint and Select Committees

Tuesday, 26 March 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Groceries Sector: Discussion with Musgrave Group and Tesco

4:50 pm

Photo of Thomas PringleThomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the Tesco representatives for their presentation. My first question relates to the code of conduct. As was mentioned in the presentation, the EU code of conduct is due to be introduced towards the end of this year. What would Tesco's view be if the Irish Government decided to put that code of conduct on a statutory footing? In their presentation, the witnesses quoted the Competition Authority's belief that a code of conduct is not necessary for the retail sector. However, the authority has said that it does not have the resources to carry out any investigations or to examine any industries here. The last report produced on the retail sector dates from 2009.

I understand no court cases have been taken for breaches under the 2002 Act regarding hello money or payments for advertising and displaying of goods in stores. Does that indicate there is no problem or that the Competition Authority is not carrying out investigations?

On pricing and support for Irish products, what is Tesco's policy on payments to suppliers? How promptly does it pay suppliers? Does it encourage suppliers to have exclusive contracts to supply Tesco? The Musgrave Group indicated to the committee that it would carry the cost of promotion on fresh produce. What is Tesco's policy in that regard?

The slide on the farm-gate prices is interesting. To what extent is it skewed by the fact that beef prices have increases and that 95% of beef is exported? How relevant is it when that is used as a comparator for retail prices across the country? What is the company's policy on below-cost selling, particularly for alcohol? Does Tesco regard it as responsible to sell alcohol products below cost? What are its views on minimum pricing for alcohol?