Dáil debates

Tuesday, 9 March 2010

3:00 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)

Does the aggressive behaviour from retail companies amount to an abuse of their dominant position? They exert phenomenal pressure on suppliers with whom they have business relationships. The power imbalance between the supplier and the retailer is an important matter. It seriously disadvantages suppliers which are trying to operate profitably. They are subject to requests for "Hello" money in one form or another. It is extremely onerous for a small business which has limited resources and may put them out of business. If our report, which will be launched next week, identifies the issues in the market, it is incumbent upon the Tánaiste to act in order to eliminate them, which requires a statutory code of practice and the establishment of an ombudsman for the retail trade to police its enforcement. That is critical.

Voluntary codes mean nothing to the retailers concerned. They appeal to all of us to put in place voluntary codes of practice. A statutory code such as that in place in England is required. The Competition Commission in the United Kingdom dealt with the issue following a report. The Competition Authority in Ireland did not do so. It wants everybody to gather the evidence. It is great at coming in and blowing its trumpet. It wants one last man or woman standing. That is all it is good for; it claps itself on the back. I fought with it in the past. It is getting a new director general, but I am not afraid to fight in public with such people, and the Minister, Deputy Calleary, knows that. It wants the last person standing, like a Clint Eastwood film with nothing but bushes growing in the ditches and one shop open - a large shop which gobbles up everything else. That is what is happening in the country. The Competition Authority has failed in this area.

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