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

The Deputies are forgetting the objective we are seeking to achieve in the Bill, namely, fair treatment for the suppliers in the supply chain. We are setting out contract terms that will protect suppliers and it is not true, as Deputy Calleary alleges, that this is a waste of time if we do not know the profitability of different retailers. The motivation behind the legislation is to ensure abusive terms are not built into contracts with suppliers. A separate discussion will take place on whether the Government should adopt a particular approach to alcohol. We cannot pretend that supermarkets are obliged to make public policy as this is a matter for the Oireachtas.

Competition law addresses the abuse of dominance, price fixing, collusion and similar activities as opposed to the profits of individual companies. The description I offered of company law relates to general provisions. We enforce a substantial amount of competition law and it is not necessary to introduce particular sectoral approaches to profit reporting to deal with competition and fair contracts.

Deputy Tóibín raises other issues and wants to introduce a rating system that amounts to an additional profit tax for companies. I do not support such an approach. We have been steadfast in defending an approach to our laws on corporation profits that provides for certainty in respect of the obligations companies face. This policy has served us well.

I do not agree with the argument made by Deputy Mathews that to regulate the supply chain and the manner in which large retailers deal with their suppliers, we must have knowledge of their ownership, control, financial arrangements, business models and this, that and the other. Our objective in this regard is to provide that large retailers treat their suppliers fairly in the contracts into which they enter. While the Deputy is free to articulate different views on companies, he should not forget the objective of the legislation, namely, to ensure small suppliers are not abused by retailers, for example, by being compelled to pay what is known as "hello money" or pay for promotions.

Our approach is effective. Obviously, we must introduce the regulations, but they will deal forensically with the problem we seek to address here, not create a new obligation on a sectoral basis that we would not apply to other sectors.

Public policy must be proportionate. We should look at the issue we are trying to solve and address that issue in a proportionate and forensic way. That is what I am doing here. We are looking at a problem in the supply chain and we are addressing it in a fair and proportionate way.

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