Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

I thank Deputy Keaveney for raising the issue of the relationship between the various stakeholders in the food supply chain, which has been the subject of much debate not just in Ireland but across Europe for some time. As the Deputy indicated, there is a sense that there is an imbalance of power between suppliers and the substantial retail chains. At national level, suppliers and distributors in the food sector have contended that there is a real imbalance whereby retailers are transferring risks which are properly their responsibility onto suppliers by means of unfair practices such as money being demanded in respect of promotional offers etc.

Deputy Keaveney made specific reference to hello money, pay to play and forced contributions to store discounts. These are some of the practices which are a cause of concern. As the Deputy is probably aware, the relevant 2006 legislation specifically outlawed hello money and other such practices. The difficulty has been that while these practices are outlawed, enforcement has not proven possible because no one has come forward to highlight cases where the abuses have occurred. Accordingly, the programme for Government contains a proposal to enact legislation that would lead to the introduction in the grocery sector of a code of practice that would have statutory effect. The idea is to try to establish a code of good practice in respect of many of the different issues involved, namely, payments for marketing costs, shrinkage, wastage within stores, positioning of products within stores, special promotions, forecasting errors, etc. We must ensure that these issues are covered within a code that will give rise to a fair sharing of the risk between those on both sides.

We are determined to introduce the legislation to which I refer. The enabling power will be provided for under the competition and consumer Bill, which is currently on the A list and which should be brought forward during the current session. It is clear that there is a need to strike a balance between the two sides and also to ensure that there is fairness.

Deputy Keaveney raised much broader issues in the context of how we might ensure that consumers will have the opportunity to choose better dietary products. Such issues go well beyond fair trading rules and would probably be better raised with Ministers who deal with nutrition and matters of that nature. I accept what the Deputy says but the rules laid down under the Competition Acts are designed to enforce the free market and ensure the people will have a choice and will not be unfairly forced to pay high prices. That is what we seek to police. The choice in respect of competing products on supermarket shelves must be determined in the context of education and tax policy, particularly in the context of the fact that certain products are treated differently for tax purposes.

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