Willie Penrose (Longford-Westmeath, Labour)
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Question 41: To ask the Minister for Enterprise; Trade and Innovation when he will implement the commitment contained in the Revised Programme for Government 2009 to introduce on a statutory basis a code of practice for the grocery goods sector; and if he will make a statement on the matter. [19458/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The renewed programme for Government contains a specific commitment to "implement a code of practice for doing business in the grocery goods sector to develop a fair trading relationship between retailers and their suppliers" and "to review progress of the code and if necessary to put in place a mandatory code". The Government will give effect to this commitment by including a specific provision in the legislation currently being prepared to merge the National Consumer Agency and the Competition Authority which will allow for the introduction of a statutory code of conduct in the grocery goods sector. I expect to publish this legislation later this year. In the interim period, until the legislation is enacted, the opportunity will be taken to explore with all relevant stakeholders the possibilities of agreeing a voluntary code. I have appointed Mr. John Travers as facilitator to engage with stakeholders regarding the drawing up of a voluntary code. Mr. Travers previously served as chief executive officer of Forfás and as acting chief executive officer of Science Foundation Ireland, SFI, at its inception.

The Government recognises the importance of ensuring that there is a fair balance in the relationships between the various players in the grocery goods sector, particularly given the importance of this sector to the national economy. The introduction of a code, as provided for in the programme for Government, is intended to achieve such a balance, taking into account the interests of all stakeholders, including the interests of the consumer, and the need to ensure that there is no impediment to the passing on of lower prices to consumers.

Willie Penrose (Longford-Westmeath, Labour)
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Is it fair that some commercial companies are abusing their strong or dominant position in the grocery sector by exerting undue and unfair pressure on other commercial companies with which they have business relationships or transactions? That is clearly an imbalance of power in the supplier-retailer relationship in the grocery trade which leads to unfair practices being employed. Outrageous sums are being demanded by some of the big players in this sector - it is not the small or medium-sized shops that are doing this - in exchange for the privilege of getting products onto supermarket shelves. This is bad for both suppliers, including the farmers who cannot get their produce onto the shelves of major supermarkets, and consumers.

Is the Minister aware that the primary producers, farmers and agriculture-related industry, and the key providers of food are not getting fair play in the food supply chain? Their viability is being seriously undermined. The country will end up with no basic primary producers. Is the Minister further aware that the committee on enterprise, trade and employment produced a report which stated that a statutory code of practice, to be overseen by the Ombudsman, would have to be put in place? That is the position as a result of the third report from the UK competition authority. The UK authority is anxious to investigate issues, unlike ours which only investigates small concerns. It is time the Competition Authority took on the big operators in this country, not chase small shops and the like.

Batt O'Keeffe (Cork North West, Fianna Fail)
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With regard to "hello money", there are specific provisions in the Competition (Amendment) Act 2006 that prohibit both retailers and goods undertakings from being involved in the compelling of another undertaking. The Act also specifically prohibits retailers from compelling suppliers to make payments for providing space. I am aware that the committee has done much excellent work, but we have not yet received its report. It is due to produce a report by mid-summer.

Willie Penrose (Longford-Westmeath, Labour)
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Yes, a full report. We have sent the Minister the interim report.

Batt O'Keeffe (Cork North West, Fianna Fail)
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I look forward to receiving that report in the context of the voluntary code of conduct that we hope will now be facilitated by the appointment of Mr. John Travers. Obviously, we will feed recommendations from the report into that process. However, it is important to stress that even though the legislation is still in place, nobody has come forward to state that they were compelled by a particular group to pay money or to do anything else that is prohibited under the Competition Act. That makes it very difficult for us to act.

Willie Penrose (Longford-Westmeath, Labour)
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Surely the Competition Authority can go into a concern and carry out a investigation, as the UK competition authority did. We learned the plain facts in the course of our investigation. We do not know who was involved because it was carried out anonymously and in confidence so we do not know who the players were. However, the position is clear. People are afraid to come forward and give evidence in case they are de-listed and lose their opportunity to sell their goods in the market. Prime quality produce is produced in this country by our farmers and others and they are entitled to a fair price, as is the consumer. Ultimately, however, if the primary producers in this country go out of business, everybody will suffer, including the consumer. While we should not forget the importance of the jobs in the major retail stores, there are also jobs at primary production level that are important and provide a living for people throughout rural Ireland.

Batt O'Keeffe (Cork North West, Fianna Fail)
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The legislation will allow the competition body to investigate complaints and will provide for sanctions. It will give extensive powers to the competition body to search premises and remove documents.

The UK model, as the Deputy knows, still has a deficiency in that it is still trying to find an efficient and effective way to deal with the issue of how one compels. We are hoping that through the voluntary code and the interaction between both sides there will be a fair balance between the stakeholders. This will form the basis for a mandatory code that can be put in place as part of the legislation. We hope Mr. Travers, with his experience, will be able to bring the two together and that it will be possible to put a voluntary code in place.