Phil Hogan (Carlow-Kilkenny, Fine Gael)

I remember that committee fondly, which is why I am referring to it. It did good work on grocery prices through an exhaustive examination of what contributes to grocery costs.

The then Government promised, following a report from the then chairman of the Competition Authority, that it could reduce the cost of a typical basket of household goods by €500 million per annum if the groceries order were reformed. Until the reform of the order, prices of food products were rising by 1.7% per annum, which took into account escalating input, labour and energy costs.

The Minister believed the rhetoric of the then chairman of the Competition Authority, Mr. Fingleton, and his successor, Mr. Prasifka, which had an ideological tinge to it. They suggested if State intervention were taken away in the supply of goods and services to the grocery market, prices to the consumer would be reduced. What has happened since the groceries order was removed has been nothing short of a catastrophe for the consumer, however. There has been an 18% increase in the cost of a typical basket of household food products. There has been no apology from the Minister responsible for this debacle, Deputy Martin. Deputy Micheál Martin is a Minister well known for reading his brief and he must get assistance in these matters on a regular basis. He never apologises to the consumer, whether in the health area or in enterprise, trade and employment, for the damage he has done. The consumer is picking up the tab for the mistakes he has made.

There is a 37% reduction in volume in the normal weekly shopping in Border counties. This is the message from retailers and RGDATA, whom I rang today to check the figures. That is a savage reduction and extends further down the country, with a 10% reduction in volume in Drogheda. Dublin is also affected by the fact that there is a more competitive atmosphere in which to shop in companies on the other part of the island.

It is interesting that the republican party has a problem with people shopping in Newry. That is the hypocrisy we must deal with from time to time. We need transparency and a better response from Government. The UK has reduced VAT and given assistance to small businesses in respect of corporation tax. We are asking small businesses in this jurisdiction to pay tax in November, even though they will not have calculated profits until 31 December. In order to fill a gap in finances, successive Fianna Fáil Ministers for Finance bring forward a payment, whether capital acquisitions tax, capital gains tax or corporation tax. That is not the way to do business in a planned way. Would it not be better to wait for the Christmas season so that retailers can pay tax in January? At least they would know whether they have made the money. To estimate tax at this time of the year is like the Lotto.

Fianna Fáil policy on the groceries trade and small business has pushed larger profits into the hands of larger multinationals. It has squeezed suppliers and lost employment. We now know what the toothless National Consumer Agency, set up as a fig leaf to give some indication that the then Minister, Deputy Martin, was doing something, is able to do nothing.

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