Séamus Kirk (Louth, Fianna Fail)
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To ask the Minister for Jobs, Enterprise and Innovation his views that the recent assessment of the Consumer Association that there is not genuine competition in the supermarket sector; and if he will make a statement on the matter. [9090/13]

Niall Collins (Limerick, Fianna Fail)
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To ask the Minister for Jobs, Enterprise and Innovation his views on the apparent lack of competition in the supermarket sector; and if he will make a statement on the matter. [9076/13]

Richard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 8 and 35 together.

The CAI survey showed that comparing 16 items across four different multiples found less than 2% price differential between them. This has also been a feature in surveys by the National Consumer Agency. The CAI suggests that special offers appear to be available rather than price differences to win new customers.

It should be said that price matching in itself is not a breach of competition law. The Competition Authority of Ireland has conducted a number of studies of competition in the grocery sector. The long-term trend has seen a decline in the number of independent retailers and growth in the number of multiples. The authority has found relatively weak competition at the wholesale and retail levels of the Irish grocery supply chain. Frequently, competition has been by way of special offers rather than by price. The Irish distribution system has been found to be inefficient compared to Britain. That said, there has been quite an amount of change in the distribution channels that have brought savings but these savings have not been uniform across the sector. The key recommendations made by the Competition Authority of Ireland were to relax the planning guidelines to make it easier for new retailers to contest the market. The Minister for the Environment, Community and Local Government has introduced new retail guidelines which are designed to reduce barriers to entry.

The entry of discount retailers has undoubtedly introduced greater competition into the market. These stores do not typically carry the branded products surveyed by the CAI and were not included in its survey.

As regards food prices, figures published by the Central Statistics Office show that food prices in Ireland increased by over 2.5% over the 20 month period coinciding with the CAI survey which showed that the price of 19 branded grocery items in four major multiples had increased by over 12%. The CSO harmonised indices of consumer prices, which is the accepted measure for comparing price trends across the EU, shows that food prices in Ireland increased by 1.6% in the 12 months to December 2012 as compared with an increase of 3.4% in the EU and 3% for the Euro area for the same period. The harmonised indices also show that food prices in Britain increased by 3.8% in that period.

Dara Calleary (Mayo, Fianna Fail)
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The Consumer Association of Ireland and the CSO figures have brought the spotlight back on to the supermarket sector. The Minister mentioned relatively weak competition and the difficulty here is that relatively weak competition is impacting on people's day to day existence. Everyone has suffered severe income cuts and they are cutting expenditure to the bone. When we see even a 2.5% increase in staple food products in a year, even if we disregard the 12% increase, it is 2.5% too much at a time when many input costs have been reduced.

Are there any plans in the Department to review the operation of the supermarket industry with a view to benchmarking it against Britain or other European competitors to see what we could do to encourage competition? Is the Minister happy with the supply arrangements that are in place and that there is proper behaviour between supermarkets and their suppliers? Is any work being done in the Department on that? There will be no new entrants to the market in its current state but what are we doing to support independent retailers in the market?

Richard Bruton (Dublin North Central, Fine Gael)
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I agree this sector has serious knock-on impacts. Over the past number of years the Irish food sector has become more competitive relative to the EU and there are improvements occurring against international trends. There have been significant new entrants and it is evident that some of them are building significant market share at keen prices.

I am conscious that this sector needs to be kept under review. It has been studied on a number of occasions previously. It remains one that is of interest in the work of my Department and its agencies. These surveys are a useful way of keeping a consciousness of the opportunities.

As regards the supply chains, later in the year I will be introducing competition legislation which will include powers to ensure there are fair relationships in the supply chain. This has been an issue of concern.

On the wider issue of supporting the retail sector, there are opportunities for the retail sector, even in a difficult climate, to evolve. Obviously, going online is an area of potential. The Minister of State, Deputy Perry, has been spearheading our review of all licences for the retail sector to ensure we remove the blockages in it that add compliance costs to small business.

Dara Calleary (Mayo, Fianna Fail)
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Another issue on which the Minister may not have a briefing is that of alcohol sales within the retail sector. Is the Government any closer to publishing its strategy on that area which will impact on the overall sector?

Richard Bruton (Dublin North Central, Fine Gael)
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I am afraid I do not have briefing on the time of that.