Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)

We should examine the reasons behind the introduction of the groceries order. It was introduced in 1987 to prevent larger supermarkets using their muscle to pressurise suppliers and force competing retailers out of business. It was introduced after a number of high-profile traditional Irish businesses went out of business. It banned the predatory practice of selling goods at below cost price. It banned large retailers pressurising suppliers to pay so-called "hello" money or rental for shelf space in stores and abusing their suppliers' payment terms. It also banned price fixing of grocery goods and boycotts of suppliers and retailers. We should remember this.

The order aimed to protect small and medium-sized independent businesses and consumer choice. It is logical that a high market share for multiples means less choice for consumers. The market share of multiples is clearly increasing. For example, 40% of the groceries market in the State is controlled by two supermarket chains. When the groceries order is abolished, this percentage will increase. In the Dublin market, 75% of the groceries market is controlled by two supermarket chains. This is not competition and it is certainly not in the interests of customers or suppliers of goods and services.

The closure of community stores will have additional knock-on effects. It will lead to an increase in out-of-town shopping centres which will, in turn, lead to additional commuting traffic and congestion. As other speakers have alluded to, RTE aired a documentary last weekend about the impact of Wal-Mart stores in the US. I watched it with interest, knowing that this debate was due and being intent on reflecting the strong lobby I have been subjected to for a long period. This is a deserving lobby which I am happy to reflect and support.

I was struck by the use of the phrase "the race to the bottom", a phrase heard frequently in recent times, which Wal-Mart and, by implication, other megastores are leading. Their relentless pursuit of the bottom line leads them in search of the cheapest product. This inevitably leads them out of the country and the western world into the underdeveloped nations where children labour for a few dollars a day. Quite apart from the significant ethical considerations, this harms indigenous industry, with jobs disappearing as production moves overseas. It is a road few of us wish to travel. Representatives of all parties and none have reflected on this position. None of us wishes to travel down this road but that is where this Bill will bring us.

It is worth noting that employment in the food production industry has increased by 100% since the introduction of the groceries order. In the five years before its introduction, employment in this sector had fallen by 15%. The Government claims that revoking the groceries order will increase competition. We heard this argument before when Telecom Éireann was privatised. More than five years later, we have a private monopoly in which consumers pay higher prices for inadequate services while the State repeatedly claims it is powerless to intervene. The Minister for Communications, Marine and Natural Resources all but admitted recently that the privatisation of Telecom Éireann was a mistake.

See this speech in context