Dáil debates

Wednesday, 1 February 2006

Competition (Amendment) Bill 2005 [Seanad]: Second Stage (Resumed).

 

5:00 pm

Photo of John CreganJohn Cregan (Limerick West, Fianna Fail)

I want to outline some of the concerns raised by some of the traders and shopkeepers in my constituency. There appears to be a great emphasis on outlawing predatory pricing, irrespective of the market share of the perpetrator. This issue in particular needs to be dealt with under the Bill. I welcome the Minister's comments on the abolition of the groceries order when he said predatory pricing was anti-competitive and outlawed by the provisions of the Competition Act. The groceries order was incapable of addressing the threat of predatory pricing, so I welcome the fact that the problem can be dealt with by amending the legislation in this way.

Another issue people are concerned about is the definition of grocery goods and they say it needs to be widened to outlaw so-called hello money comprehensively. Again, my colleague, Deputy Ring, alluded to hello money being offered to Fianna Fáil politicians. I believe others in the grocery trade offered such money as well to politicians from other parties. The precedent was probably set in that instance as well. The Minister, on the subject of "hello" money, announced that the Government will publish new legislative proposals shortly to strengthen greatly the provisions of the Competition Act 2002 to prohibit specifically the fixing of minimum retail prices by suppliers, resale price maintenance, unfair discrimination and the payment of advertising allowances and "hello" money. I welcome that very much and hope this legislation can succeed in its purpose

Restriction of offers of discount items must be outlawed along with confining a loss-leading campaign to a geographical market or single location. The latter practice is quite unfair and if it must be done, it should be undertaken nationally to level the playing pitch further. Advertisements for loss-leading items should state whether the reduction in prices is being recovered through other items in the basket, which often can amount to quite a number of grocery items. The issue of prompt payment to suppliers needs to be especially addressed, as it was under the groceries order.

I am glad to have had the opportunity of participating briefly in this debate. I commend the Minister for Enterprise, Trade and Employment, Deputy Martin, and his two Ministers of State, Deputy Killeen and Deputy Michael Ahern, on the work they are doing in the Department. Deputy Ring referred to the Minister coming to Ballina and announcing 20 jobs. When my constituency was in difficulty about 11 months ago and some 120 poultry jobs were lost in Kantoher, west Limerick, the Minister took time to meet people there. He gave a local group encouragement. He made the various State bodies available to this group. I am glad to report that before we arrive at the first anniversary of this occurrence, three separate indigenous companies have been installed on the site of the former Kantoher chicken processing plant and that news is very welcome.

It is unfair of Deputy Ring to say he does not trust the Minister. I trust him wholeheartedly and wish him well. I am quite sure he will do what Fianna Fáil and this Fianna Fáil-led Government has always done, namely, protect the smaller businessperson. It will ensure that smaller shops will not close. Such shops have provided vibrancy in communities and underpinned the local economy. They provide gainful employment and choice to consumers and this must be acknowledged. It is not all about price, it is about convenience as well. Many consumers like to have the option of convenience and choice. I believe there is the best of both worlds in this country. We should protect what we have to ensure this continues and that we have sustainability for smaller shops so that they may survive.

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