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

I do not accept this is how we should go. The issue regarding groceries has long been building as a concern, and there have been many practices such as "hello money" and special promotions which have left suppliers exposed. There is also an issue with regard to how wastage and forecasting are used by large retailers to militate against the interests of suppliers. This set of problems is unique to the sector and we are seeking to address it by having written contracts and making general regulations in respect of the contracts. There has been lengthy consultation on this. In the first instance we hoped to have voluntary codes, but this proved impossible, so we are moving to a statutory approach, which is the only way we can achieve this. We will require retention of evidence of these contracts and compliance statements. We will give power to the Competition Authority to serve notice of malpractice in the sector. I do not propose to extend it beyond the grocery sector into any number of cases which could be made on individual experiences. The role to investigate these individual experiences rests with the Competition Authority and the new competition and consumer commission.

The Competition Authority has the power not only to take enforcement action but also to examine conditions of competition in any particular sector. It has this right so if it feels there is public concern about newspapers and magazines or another sector it has the power to have the necessary studies undertaken to examine what is happening in the sector. This is the approach we should continue to operate. I understand that a case can be made with regard to the small dealing with the large but it is not the approach we propose here. This is a specific targeted intervention to deal with a sector where, because of the sheer size of many of these retailers compared to the suppliers, this is the approach which we consider is appropriate.

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