Mary Coughlan (Donegal South West, Fianna Fail)

The relationships between suppliers and retailers and the contractual agreements entered into by them, as with any other parties entering contracts, is essentially a matter for the contracting parties themselves. Retailers, including the retailer referred to in the Deputy's question, have for some time maintained that the costs of sourcing goods in Ireland is significantly greater than the costs of sourcing such goods in Northern Ireland and the UK and that the current structure of the wholesale and distribution cost base in Ireland is preventing the benefits of the euro's appreciation in value over sterling from being passed on to consumers.

The retailer concerned has publicly stated that it changed the manner in which it sources certain internationally branded products as international suppliers were treating its operations in this country significantly differently from how they treated its operations in other jurisdictions such as the UK and that the direct consequence of these changes has been a significant reduction in its prices to consumers. The retailer has advised that notwithstanding the introduction of new internationally sourced products, it has retained its comprehensive range of familiar Irish products and brands.

The Deputy will be aware that I requested the Competition Authority to carry out a study of the retail import-distribution sector as to how competition is working in the sector and whether any practices or methods of competition are affecting the supply of goods and services in that sector. I received the authority's report on 30 April and I am examining its findings. I will publish the report shortly.

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