Dáil debates

Wednesday, 1 February 2006

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

 

6:00 pm

Photo of Dan BoyleDan Boyle (Cork South Central, Green Party)

The path the Government has embarked upon does not concern competition. It will lead us down the path of cartels to duopoly and, eventually, to single companies controlling the operation of retail activities in towns and villages.

The Minister, if he was so inclined, would have found the recent documentary about the Wal-Mart chain on RTE 2 television instructive. Wal-Mart is the supermarket chain that is all-pervasive in the United States. Not only has it seen off competition from other retail outlets and the American equivalent of small corner shops, it uses its economic muscle to put out of business suppliers within the US economy by putting constant downward pressure on the prices at which suppliers are asked to supply their goods. That same phenomenon and the same economic forces are in operation within the Irish economy. They will be stronger as a result of the policy route upon which the Government has embarked.

The Minister and I come from a part of the country that was home to the first Dunnes Stores, is home to Roches Stores and is headquarters of the Musgrave operation. Ironically, Musgrave is very much opposed to what the Government suggests because it knows that the threats to retail activity and the provision of proper service and price comparisons to the consumer are at the heart of what the Government proposes. In reality, a situation exists whereby there are no more than three or four multiples in Ireland. As a result of the Government proposals, I foresee this number reducing to one or two. Then, as Deputy Ned O'Keeffe described so articulately given that he is a Government Deputy, we will eventually see the "Tescofication" of the Irish retail market. How would that serve the interests of the Irish consumer?

This is a knee-jerk, panic reaction on the part of the Government on foot of the successful television programme, "Rip-Off Republic", hosted by Eddie Hobbs. Again, there is a useful link in that while the Minister was studying for his leaving certificate and I was studying for my intermediate certificate, Mr. Hobbs was in fifth year in the same school as both of us. This does not mean that everything uttered by Mr. Hobbs in "Rip-Off Republic" was correct. Most of what he said in highlighting much of the inefficiency and fraud at the heart of retail and services was correct. However, his belief that simply getting rid of the groceries order instead of strengthening it and making it more socially useful will benefit the consumer is fatally flawed.

The long-term effect of abolishing this type of social protection for local communities will be the scenario described by Deputy Ned O'Keeffe, myself and many other Deputies. The Government should be warned. The Minister of State should not sneer at this approach.

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