Dáil debates

Wednesday, 25 May 2005

1:00 pm

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)

I am glad to see the spirit on the other side of the House. The Department of Agriculture and Food is acutely aware of the issues surrounding the groceries order and, as I am sure the Deputy knows, many of the complaints of those involved in agriculture relate to products outside the ambit of the groceries order, fresh meat, fruit and vegetables in particular. Those involved in horticulture are anxious to see those form part of the groceries order. The order was introduced at the time the H Williams supermarket chain went into liquidation. The problem is that there is a significant diversity of views as to whether this order is doing what it should be doing.

The Competition Authority maintains this is the only way to ensure competition. Given that the market share of many of the large retailers does not allow competition, we have a problem with the argument over the groceries order. The arrival of discount stores such as Aldi and Lidl provides competition and questions the necessity of the order. IBEC along with the IFA and other farming organisations have recommended to me that the groceries order should remain and have made good points in support of this. It is incumbent on us all to make a decision between the positions of the Competition Authority and the consumer strategy group as to whether there will be a change in consumer price and choice as well as in the existing farm gate prices. A complex and difficult decision must be made because of the diverse views on both sides.

We have evaluated advertisements on a number of occasions within the Department on the basis of price structure, which is one of the major issues. I provided funding this year to the consumer group, which is part of the Department, to carry out a true, open and transparent assessment of costs of food in particular which is a major issue for people. We have evaluated it. IBEC, representatives of the agrifood industry and producers have concerns over the removal of the groceries order. In addition, others, most particularly those on the horticultural side, want their products within the scope of the order. Ultimately it will be a question of what is the right thing to do and we are asking people for their views as to which is the right way to go. Other issues outside the groceries order cause greater angst and concern, mostly regarding the market share of a number of very large supermarkets in the United Kingdom and here.

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