Phil Hogan (Carlow-Kilkenny, Fine Gael)

The Minister knows that the commitments he made are not being honoured with regard to prices in the grocery trade. The Minister stated at the launch of his report in November: "We want to make it very clear that the existence of the order maintained an upward pressure on prices and we would argue that its removal will ensure that there is a downward pressure on prices". Prices have risen so obviously we did not get it right. The Minister's views may not be shared by everybody with regard to how we should tackle this issue. Everybody wants to see the benefit of any squeeze being put on small suppliers passed on to consumers. Such a squeeze is happening now more than ever because of the lack of protection for such suppliers in the Act and the lack of interest the Minister displayed in banning predatory pricing. We are now in a situation where there is less choice and less diversity, and, according to the first survey since the groceries order was abolished and the new Act was enacted, basic household products, such as eggs, butter and tea, have increased in price.

We are not getting it right with regard to ensuring that the consumer gets the benefit of repeal of the order. Fine Gael tabled an amendment, which the Minister chose to ignore, as is his prerogative, to ensure that savings, discounts and rebates would be passed on to the consumer. The Minister chose differently and now the large supermarkets like Tesco and Dunnes Stores will reap the benefit of any squeeze on suppliers in terms of higher margins and profitability.

Will the Minister accept that an amendment to the Competition (Amendment) Act is required to ensure that consumers get the benefit of the repeal of the groceries order and that it is not, as some commentators have suggested, simply a question of consumers sending e-mails to Dunnes Stores and Tesco?

Will the Minister examine the Casual Trading Act? The Act was identified as a mechanism through which local producers could sell local produce fresh to a local market place in every town and village. Changes to the Act may have to be considered because it is in operation ten years, since 1996. It is a separate issue through which we could have another means of getting fresh grocery products to the marketplace in localised areas to the benefit not only of producers but also of consumers.

See this speech in context