Donnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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I move:

That Dáil Éireann: acknowledges that:

— unsustainably high grocery and food bills continue to put workers and families under significant financial pressure; and

— this pressure has been exacerbated by the failure of the Minister for Finance, Michael McGrath TD, and the Minister for Public Expenditure, National Development Plan Delivery and Reform, Pascal Donohoe TD, to provide certainty to workers and families in respect of energy bills and mortgage relief from rising interest rates;

notes that:

— grocery prices have soared by almost 17 per cent over the past year, with inflation in Irish supermarkets at the highest level ever recorded by retail analysts Kantar across the past 12 months;

— the latest figures for the 12-week period to 16th April show the rate of food inflation is 16.6 per cent; and

— this means the average annual grocery bill is set to rise by approximately €1,200 if consumers maintain the same shopping habits;

furthermore notes that:

— the sustained historic levels of grocery inflation underscore the need for the yet to be established An Rialálaí Agraibhia (Agri-Food Regulator) to be empowered to investigate anti-competitive practices in the agri-food supply chain; and

— the primary function of the Competition and Consumer Protection Commission (CCPC), as defined in Section (8)(1)(a) of the Consumer Protection Act 2007, is to promote and protect the interests and welfare of consumers;

condemns:

— the failure of this Government to take decisive and urgent action while food prices soar;

— the decision by the Government in Budget 2023 to provide rate increases to social welfare recipients and pensioners significantly short of what was required to cope with inflation, despite proposals brought forward by Sinn Féin and others who recognised the need for greater weekly social welfare increases; and

— the inadequacy of Government measures which has prompted growing reliance on food banks; and

calls on the Government to:

— do all in its power to ensure savings made by supermarkets and large food retailers in respect of falling input costs are passed onto consumers through lower grocery prices;

— instruct the CCPC to investigate possible price gouging in the retail food and grocery sector;

— further increase weekly social welfare and pension rates to stem the flow of families and pensioners into food poverty; and

— amend the Agricultural and Food Supply Chain Bill 2022 to give the proposed Agri-Food Regulator powers to investigate anti-competitive practices in the agri-food supply chain.

We are bringing forward this motion this evening because of the cost-of-living crisis that has been challenging many families and individuals not just for the past year but for several years. In many respects we started talking about the cost-of-living crisis in the context of energy but it is much wider than that. It comes back to public services and the double-charging that can go on. It relates to groceries and many other items as well as energy. At this time, the focus relates to a large extent to the challenges people face at the till. I am dealing with countless families day in and day out in Cork who are really struggling under relentless pressure from food costs, energy costs, rent and mortgage costs. There seems to be no end in sight and no respite for these families.

The Government has failed to provide certainty to households over their energy bills, refused to freeze rents for renters or provide relief to hard-pressed mortgage holders and continues to sit on its hands as food prices soar. People have been put to the pin of their collar. The Government does not seem to understand the urgency that is needed, and there is no coherent strategy in place to combat spiralling costs.

The time to act is now, not to continue to sit on its hands, waiting until the budget in October as food and energy prices continue to soar. In particular, families are feeling the pressure at the till. The weekly shop is going up by €20 or €30 and more for many families. People are going to the till, wondering if there is enough on the card to pay for the shopping and trying to decide what they will leave behind if they do not have enough. Will they leave behind the washing powder, the packet of mince or the stuff for the kids' school lunches? These are the basic decisions people need to make, fearful of that horrible feeling if it comes up, "payment declined". There always have been families who face these pressures, but it is happening increasingly now as they feel the strain of increased energy costs, childcare costs and now groceries. These are the basics - food to feed themselves and their families, detergent to clean clothes, basic household goods. Nearly all of them are increasing now and people are feeling it.

We are calling on Government to do all in its power to ensure savings made by supermarkets and large food retailers in respect to falling input costs are passed on to consumers through lower grocery prices. We need the Competition and Consumer Protection Commission, CCPC, to investigate this. People badly need a break from this constant barrage of sky rocketing costs and the Government must act on this now.

Louise O'Reilly (Dublin Fingal, Sinn Fein)
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I apologise for being late. I am grateful for the opportunity to speak this evening. This is an important Private Members' motion because people need to understand that we are bringing to the attention of the Government issues that are very serious. The Government needs to listen and be willing to respond. People are struggling and they fear they are not being listened to or heard. We welcome the steps the Government has taken so far. We believe there is a need to be firmer, stronger and more strident, and to do that bit more for people who are struggling.

Food price increases are literally the bread-and-butter issues that are facing ordinary people. High grocery bills continue to put workers and families under significant financial pressure. This pressure has been exacerbated by the failure of the Minister for Finance and the Minister for Public Expenditure, National Development Plan Delivery and Reform to provide certainty to workers and families in respect of energy bills and mortgage relief from spiralling interest rates.

The decision by the Government in budget 2023 to provide a rate increase to social welfare recipients and pensioners that falls significantly short of what is required to cope with inflation despite proposals brought forward by Sinn Féin and others who recognise the need for greater weekly social protection increases was a disgraceful decision.

We brought forward this motion to demand the Government do all in its power to ensure savings made by supermarkets and large food retailers in respect of falling input costs are passed on to consumers through lower grocery prices. In seeking that savings are passed on to customers, it must be stated clearly and unequivocally that supermarkets and large conglomerates should in no way try to squeeze primary producers who are also under significant pressure.

A tool at the Government's disposal is the Competition and Consumer Protection Commission and it should be instructed to urgently investigate possible price gouging in the retail food and grocery sector. At the beginning of March, the ECB highlighted that corporate profiteering contributed twice as much to price rises as wage increases. The ECB stated that price gouging was contributing to price rises as firms are using inflation as an excuse to increase their profit margins. It outlined that company profit margins have been increasing rather than shrinking as might be expected when input costs rise so sharply. The Government and policymakers have repeatedly called for wage restraint but it is clear that the biggest driver of price rises is companies using inflation as an excuse to increase profit margins, a trend trade unions have rightly described as "greedflation".

Corporate profiteering is a real concern and a significant contributor to inflation. We must question why the Government and policymakers at national and European level seek to suppress wages while letting profits rip.

The idea that companies have been raising prices in excess of their costs at the expense of consumers and workers should be a concern for all of us. Elements of corporate profiteering are clearly affecting consumers on the one hand and primary producers on the other. Both are suffering as a result of price hikes. It is clear the inflation narrative has afforded large companies the opportunity to raise prices, and certain companies are taking advantage of this moment to boost their profits, as was pointed out by the European Central Bank, ECB.

Everything is going up while real wages are falling. For example, across north county Dublin, waste collection charges have increased recently. One company has a monopoly on waste collection and has introduced a charge for brown bin collection while increasing the charges for green and black bin collections also. When I wrote to the Minister on this, he had no answer. The response of the Government to ordinary workers and families seems to be to just lie down, accept the price hikes, and there is nothing that can be done. It seems that whenever something goes wrong in the economy, workers have to pay the price. I can tell the Minister of State, Deputy Richmond, that the people of Fingal and Sinn Féin are saying "No". Ordinary people are shouldering a huge burden and they are not prepared to prop up the excess profits of huge companies and conglomerates.

Solutions and measures are needed that benefit ordinary workers and families as well as primary producers. The Government needs to ensure the downward price pressure on supermarket retail prices is not used against Irish growers and producers, who were already under extreme pressure to reduce their prices long before Covid and the war in Ukraine. Over the past ten years, price pressure on growers has seen many of these businesses collapse. A reduction in the rate of inflation cannot be used as a further buying tactic from supermarkets to reduce the prices they pay to producers. There will be no growers or producers left if this continues.

I draw the Minister of State's attention to the survey and research conducted by the Unite trade union in which it found that, in real terms, wages have fallen by an average of €76. This impacts on people and their ability to feed their families and pay their grocery bills.

Patricia Ryan (Kildare South, Sinn Fein)
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I thank my colleague Deputy Louise O’Reilly for bringing this timely motion before the Dáil. I want to address the issue of unsustainably high grocery and food bills that have been troubling people for far too long. Families and workers across the State are struggling to make ends meet as they grapple with the ever increasing cost of living. The Government's failure to address this issue has left many feeling abandoned and forgotten. The rising cost of food and groceries is not simply a result of inflation or the war in Ukraine. Corporate super-profiteering has contributed twice as much to price rises as wage increases. This phenomenon of greedflation is nothing short of economic exploitation. As pointed out, certain corporations have taken advantage of their market power to gouge prices and pad their profits at the expense of ordinary people. The Government's refusal to address this issue is a clear sign of its detachment from the struggles of working families. The Government's inaction speaks volumes about its priorities. The impact of these rising food costs cannot be understated. Families are forced to make impossible choices between buying food and paying for other essentials such as housing, energy bills, and education. We cannot continue to allow this to happen. It is time for the Government to take meaningful action to address the issue of greedflation and rising grocery bills.

I urge the Government to take action now and support our motion. I ask the Government to instruct the Competition and Consumer Protection Commission to investigate possible price gouging. The Government must do all in its power to ensure savings made by supermarkets and large food retailers with falling input costs are passed on to consumers. We need immediate action to address this issue and to ensure the needs of ordinary workers and families are prioritised. It is time for change.

Seán Crowe (Dublin South West, Sinn Fein)
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Grocery prices have soared by 17% over the past year, which is the highest rise ever recorded. This means the average grocery bill could rise by €1,200 a year, just to put food on the table, if the current trend continues. We know this rise in the cost of living shows no sign of slowing down. What we were told was a temporary rise in inflation, a reaction to the war in Ukraine, has persisted and running a household is becoming increasingly unaffordable. Prices will not come down on their own. We saw this with petrol and diesel where a slight decrease from the highest prices became the new normal. It is the same with utility bills and grocery bills. Prices will not come down unless action is taken in this House to protect workers and their families.

The Government likes to say "No", whether it is on mortgage interest relief supports or with the rising cost of putting food on the table for a family. Food banks are popping up all over the place and this Government will not even consider taking action until the October budget. That is a long way away for a lot of people when they see large bills coming through the door and they are wondering how to pay for basics like food.

We need to increase weekly social welfare and pension rates to stem the flow of families, and especially pensioners, into food poverty. We need to secure the food supply chain in Ireland. We grow enough food to feed this island ten times over. Why is that not reflected in the cost of food? It is because we have allowed input costs to go entirely out of control. Diesel costs have doubled and fertiliser costs have tripled. All of this throws uncertainty over the agriculture sector and drives up the prices for the consumer. This is about more than growing lettuce in a window box. This is about protecting the farmer and the consumer and creating a system that is fair and less reliant on imports, to the benefit of both.

The Government is a past master at wait and see, or it waits for Europe to lead. The consumer price index rose for the 18th month in a row in March. More and more vulnerable families cannot wait. We need to do more.

Réada Cronin (Kildare North, Sinn Fein)
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I am very glad to speak on our motion because prices and corporate greed are soaring while people’s standards of living, and their hearts, are sinking. I commend an Teachta O'Reilly on this Private Member's motion. I am very pleased the Minister of State, Deputy Richmond, will not oppose the motion. I am sure the Minister of State is also hearing that prices in our shops are not normal. The fear of going out to do the big shop, which is becoming the much-smaller shop, is not normal. The indifference the Government has to the suffering of its people is not normal either. Groceries are up 17% a year and food inflation in the 12 weeks to mid-April is almost the same. Thus far, the Government has not even looked at price gouging and corporate profiteering.

In north Kildare, people are suffering. Every week when I see people doing their supermarket shop, I see them putting stuff up to the till but holding back the biscuits and the little luxuries. I have spotted this quite often when doing my shop. These are our workers and our carers. They are our pensioners and our families who are forced to depend on social welfare. There appears to be zero compassion for them and zero care, even though they will spend an extra €1,200 per year on groceries, given current spending patterns. The Government message is, "Yes, we could help you but we are choosing not to." This is what people are hearing. This is what people are saying to me. This is no way for people to live. This is what they tell me when they get in touch with me. They feel abandoned, unheard and not listened to. They feel they are living in a parallel universe to the Government where everything is hunky-dory and money is rolling into the Exchequer through their hard work, but they are being left to fend for themselves in a kind of coalition hunger games of economic survival. It is not even about bread and butter issues anymore: it is bread and spread. They are trying to spread the spread as thinly as possible to make it last. It would seem the Government is tone deaf. It is time the Government really got itself in gear. We must make sure corporate savings are passed on to customers. It is not rocket science, but it is the Minister of State's job. I wish the Minister of State, Deputy Richmond, all the best in his new job. I congratulate him on that. I am glad the Minister of State will not oppose the motion.

Denise Mitchell (Dublin Bay North, Sinn Fein)
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Parents, families and workers are really struggling with the cost-of-living crisis. Whether it is energy bills, rent, mortgage payments, groceries, clothes - the list could go on and on - the price of everything is going up and nothing is coming down. Last week’s Kantar report and the ECB back this up. People are put to the pin of their collar. Food poverty is a very real issue. The Minister of State and his Government have to get a grip on it.

As my colleague Deputy Cronin has said, I too find doing the weekly shop heartbreaking when I see parents at a till asking the cashier to stop when the total reaches a certain amount, or when I see the parents putting stuff back because they cannot afford it.

This is the lived reality for many people. All the staples of the weekly shop have all gone up in price, be they butter, milk, bread or other items. The war in Ukraine was blamed for the rise in prices. The cost of production has come down, yet prices in our supermarkets still stay the same. It is very simple; this is price gouging. Some call it greedflation. Whatever it is or is not, it is wrong and is really hurting people.

The Minister of State is meeting with the large supermarkets this week. This is welcome but it is a little late. This should have been done months ago. It is now time for the Minister of State to start playing hardball with supermarkets. They were not shy when they put up their prices overnight. He said he is not opposing our motion so I take it he agrees with some of our requests. When the Minister of State meets representatives from these supermarket chains, will he ask them to reduce their prices as quickly as they put them up for people? Our people need that. They are hoping the Minister of State will deliver on this.

Martin Browne (Tipperary, Sinn Fein)
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I also commend Deputy O'Reilly on bringing the motion before the House and wish the Minister of State well in his new post. Throughout the cost-of-living crisis, one matter we have consistently raised with members of the Government is the urgency of the issues facing people and the need to act accordingly, but the Government consistently fails to do this. It ended the eviction ban with no preparation made for the surge in homeless presentations, it dragged its feet on imposing a windfall tax on energy companies that have been posting record profits while people go to food banks and, in the budget, it failed to provide rate increases to social welfare and pension recipients to enable them to cope with inflation. Now with grocery price inflation running at 16.6% in the three months to the middle of April and the European Central Bank, ECB, highlighting how firms are using inflation to boost their own prices, we find ourselves in the House again appealing to the Minister of State.

Last week the Clonmel community food bank ran out of supplies. We get reports of children going into school hungry and unable to focus on their homework. This will have longer term consequences for some. That is a matter of extreme urgency and a disgrace under the Government's watch. I appeal to it to act now and instruct the Competition and Consumer Protection Commission to investigate possible price gouging and to promote and protect the interests and welfare of consumers.

I have been involved in debates on the Agricultural and Food Supply Chain Bill that would establish a food regulator, which Sinn Féin has been demanding, to be responsible for enforcing agrifood unfair trading law but also having the capacity to address anti-competitive actions. I will grant the Minister has tabled some amendments to expand the regulator’s ability to analyse data impacting upon price and margins, but investigating anti-competitive actions in the agrifood supply chain has been resisted by him. While the majority of the focus at the committee has rightly been on the farmer, to get a firm view of anti-competitive measures we need the regulator to view all that happens along the line up to the consumer.

Sinn Féin has tabled amendments to this Bill but they have always been voted down. At one end of the agrifood chain farmers have traditionally been calling out the anti-competitive practices they have to deal with. Now the consumer is falling foul of similar practices. When will we address what we know is going on so that we can prevent poverty, hunger and all that goes with it and act to address these issues before they arise? We again appeal to the Minister of State to act, to address price gouging, give supports that are in line with the increased cost of living, and create a food regulator with teeth.

Neale Richmond (Dublin Rathdown, Fine Gael)
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I thank the Deputies for raising these important matters and allowing us time to discuss them. As mentioned, we will not oppose the motion. In fact, it is fair to say we are largely in agreement. Needless to say, I do not agree with some of the language that has just been used. I, too, do the weekly shop for my household and see people suffering, be they in Nutgrove, Rathfarnham, Stillorgan or Dundrum, where they have to make those horrendous decisions between bread or nappies and butter or washing powder. It is completely unacceptable in a progressive modern society and it lends itself to genuine and real concerns. However, there is no monopoly on compassion in this Chamber. We work best when we work together. We have identified a very clear issue on which we do not necessarily disagree. I will take some issue with some of the points made during the debate but I do not want this to devolve into a political tit-for-tat debate. We are all, I hope, looking for an agreed solution. The Government has done quite a bit to support households. We recognise there is a cost-of-living crisis. There will always be those who, understandably, want us to do more or, indeed, less but we fundamentally stand over what we have done, not just in the context of the previous budget but in light of the issues at hand as per this motion.

I will use this opportunity to set out some of the context for the current situation we face and the unprecedented supports the Government has provided. The current rise in grocery prices is not attributable to one sole factor. A combination of issues was responsible for the initial rise in prices since mid-2021, from rapid economic recovery from the pandemic, to international supply chain issues that were partly related to China's zero Covid stance, and weak price trends in 2020. We cannot dismiss the impact of the war in Ukraine and cannot just say that it is being used as something to blame. It is having a very real impact, especially when it comes to food production, the cost of fertiliser, the global cost of energy and core supplies early in the food chain, be they the global price of grain or anything else. Events, therefore, have put an exceptional pressure on prices and, as such, costs have gone up substantially.

However, we are now at a point where inflation is decreasing. It is down close to 6% from a high of 10% and will drop even further towards 4.5% this year, on which I will go into more detail later and, of course, we expect to see food prices to come down. We are not just looking for it. We fundamentally expect to see food prices come down as input costs fall. The motion states the Government has not taken action while grocery prices rise. Quite frankly, this is false. In my time in the Department, I have met with retail sector representatives and retailers weekly, if not daily, and discussed this issue quite clearly with them. There is no refusal to act on the part of this Government. It is acting and engaging. It is not reaching for draconian measures straight off and not going nuclear. It is genuinely trying to act with retailers, producers and food companies to deliver the best result for customers at the checkout, who include our neighbours, friends and the constituents we represent. That is what we are looking to do.

As was mentioned, part of my role as Minister of State is to chair the retail forum in the Department, which was established by Deputy Nash during his time in ministerial office. It is a good forum that brings together the major retailers in Ireland as well as their representative groups, and includes the large multiples, the smaller shops and corner shops. I have found it to be a very open forum for a frank and honest exchange. The next meeting of the forum was set to be on 21 June but I have called a special meeting for tomorrow at 2 p.m. solely to discuss the single issue of grocery prices. I have made it perfectly clear what I expect and hope to get out of this meeting. I will seek assurances from the sector that the reduced input costs have come through and that it will pass these reductions on to its customers. I will make the point raised by Deputy Mitchell absolutely clear.

We all know that inflation is high in Ireland but it is not as high as earlier this year, when we saw prices skyrocket. Not only have we seen inflation fall, we have also seen many business customers receive cuts to their electricity bills on top of supports from the Government, including the temporary business energy support scheme, TBESS, which allows them to receive up to €15,000 per month, or €45,000 per month for those with multiple locations, off their electricity costs. In recent weeks, we have seen that retailers have been able to lower prices. Major retailers have reduced the price of milk by 10 cent per litre and butter by 40 cent per pound. This is very welcome and is a clear indication that competition in the retail sector is having an impact, with retailers matching their competitors' lower prices.

I went around the supermarkets in my constituency this morning before coming to the House - they include the five major multiples that everyone knows and are in most people's constituencies - to compare prices. We see a consistency in price, especially in the staple goods that so many households rely on, including the real basics and the ones we simply cannot do without. Anyone with a young child simply cannot do without nappies, let alone bread or butter. The fact that Irish food inflation is less than the EU average suggests that Irish supports to business and the level of competition in the market is, however, having an impact. Relations between the Government and the retail sector have been very strong and positive. From Brexit to Covid and now on the cost-of-living crisis, we have worked together very closely and effectively. I see no reason this situation will be any different. Retailers provided an enormous service to the country during Covid-19, in particular, and they in turn were very well supported by the Government when it came to energy costs. We think of the risk at which those people who work in our large, and smaller, retail stores put themselves and their families during the years of Covid to ensure we could put food on the table. That should not be forgotten. It should not be forgotten by the Government, or any of us in the House or those people's employers.

As I said, one of the key issues driving food prices is energy costs. This Government has provided enormous supports on this front, as we have done for all households during the cost-of-living crisis, despite claims made this evening. I regret getting too political, but the notion of providing certainty and the constant referral to price caps is not a policy that will work in this country.

It is a policy that failed in London and the sooner it is disregarded by some in this House, the better. Due to this and to the Government's responsible handling of the economy, we have, however, been in a position to be able to continue to respond to a series of unprecedented events in recent years. In a European context, Ireland’s economic recovery from the pandemic has been remarkable. Part of the attraction of doing business in Ireland is the stability to be found here, including a predominantly open market that is a positive place for business. The notion of wage suppression has been raised across the House, but we have seen the minimum wage increased and we are moving towards a living wage sectoral agreement and other sectoral agreements for wages to increase. While we accept that real wages went down last year, as the Taoiseach said in Leaders' Questions today, we are confident that they will go up this year. We will work to ensure the political environment to allow for that is in place.

We are well aware of the pressure families, households, workers and businesses have been under in the past year with rising costs and bills and we have acted on it. We have introduced measures totalling €12 billion to reduce pressures on people and families. There is a notion that childcare costs are going up but in fact they have come down. I have seen that because I pay childcare costs every week. We see it because determinative action was taken in the last budget and more action will be taken in that regard in the next budget.

The Government also introduced a €2.4 billion package of supports during 2022 and an additional package of one-off measures worth €2.5 billion in budget 2023. In February of this year, we announced a further €1.2 billion package to help families, businesses, pensioners, carers and people with disabilities to cope with the rising cost of living. These supports would have been unthinkable a few years ago. It is important that we remind ourselves once again of those supports and how they benefit people. Through the first and the second electricity credits, more than 2.1 million households automatically received €800 of income support through their electricity bill at a total cost of €1.59 billion between the first quarter of 2022 and the second quarter of 2023. Approximately 99% of all eligible customers had the credit applied to their account. This has worked and had an immediate effect in each of the instances in which it was applied in reducing the number of houses which were late with their payments. As well as some universal measures to help all households, we specifically targeted those most at risk. That is why the Government increased funding for supports such as the fuel allowance; reduced VAT on gas and electricity bills; reduced excise duty; and allocated a total of €267 million, of which €202 million comes from carbon tax receipts, to the Sustainable Energy Authority of Ireland, SEAI, to allow households at risk of energy poverty to reduce their costs.

Budget 2023 also contained a number of measures aimed at assisting businesses with rising costs. The main one was the aforementioned €1.25 billion allocated to the temporary business energy support scheme, TBESS, alongside which the reduced rate of VAT on gas and electricity - reduced from 13.5% to 9% - was extended until the end February 2023. Through supporting businesses in meeting energy costs, this scheme will not only help protect the jobs of those working in impacted sectors, but also help businesses pass on savings to customers. That is something I already referred to and which I absolutely expect to see.

There has been some talk in the media about the possible introduction of price caps. This is something we are extremely reluctant to look at as a route to go down. In Europe, Croatia and Hungary both introduced food price controls, although their food inflation peaked at 20% and 50% respectively. Not only were they in a different position to Ireland, but they have found that the caps have not been successful as they related to specific products. However, in France the equivalent of the Retail Forum was called and there was engagement with the Minister and a commitment for the months from April to June to seeing real and tangible reductions in food costs.

There is considerably more in this motion about the Agricultural and Food Supply Chain Bill 2022, the role of the Competition and Consumer Protection Commission, CCPC, and much else, which my colleague, the Minister of State, Deputy Calleary, will refer to in his summing up when he also addresses many of the points raised across the Chamber.

I will end on the issue of grocery prices, which is the most topical issue, not only this week but for a number of weeks. It has been raised in this Chamber by Deputies opposite, including Deputies Nash and Higgins. I look forward to the meeting tomorrow. It will be an effective one and I look forward to briefing the House in due course on its outcome.

Chris Andrews (Dublin Bay South, Sinn Fein)
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I thank my Sinn Féin colleagues for their work in tabling this motion. Perhaps the most visible sign of the cost-of-living crisis is the continual rise in the cost of food and groceries. Everyone in a household, from children to parents, can see prices rising. The Government's approach of sitting on its hands as food prices soar shows clearly how utterly out of touch it is with ordinary workers and their families. What will it take for this Government finally to stand on the side of ordinary workers and their families? Workers are seeing their real wages steadily decrease. At the same time, the price of the finished products produced by farmers has also been decreasing since last December yet the price of food and groceries is rising month after month. It has increased 17% since last year. Supermarket chains are making record profits at the expense of ordinary workers and their families. The greed of record profits is running wild and must be reined in. Companies are clearly using inflation as an excuse to rake in high profits. The trade unions recently described it well when they called it "greedflation". How far will the Government let the price gouging go before saying enough is enough? Workers need to see real and meaningful change from this Government. We need to see the Government start by instructing the CCPC to investigate possible price gouging in the retail food and grocery sector. We cannot continue to let food prices rise any more. Many workers and families are already under financial pressure. When will enough be enough?

Dessie Ellis (Dublin North West, Sinn Fein)
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I dtús báire gabhaim buíochas le mo chomhghleacaí an Teachta Louise O'Reilly as an rún seo a chur os comhair an Tí. The cost of buying groceries in Ireland soared by more than 15% in the year to January 2023. In addition, the rate of inflation in supermarkets had reached one of the highest levels ever recorded by retail. The cost of essential basic products has risen sharply and has added to the stresses and pressures families face in the middle of a cost-of-living crisis and at a time when energy bills are sky-rocketing. It is important that companies do not take undue advantage of these constantly rising prices of groceries and engage in profiteering as families are forced to buy essentials at inflated prices. Essentials, such as milk, cheese and butter, have all increased in price. Consumers are experiencing record food inflation rates, which are much higher than the general rate of inflation. The price of a 2l carton of whole milk has risen by €0.53 or more than 36% in comparison with prices last year. The price of a carton of eggs and a packet of butter both rose by slightly more than 22%.

Everyone is affected but the people who are least able to absorb these soaring prices are those in receipt of welfare benefits, low income families and pensioners. Economically disadvantaged households face a higher effective inflation rate because they spend more of their income on essentials such as energy and basic goods. It has proven difficult for families to keep their heads above water as they struggle to cope with a deluge of rising costs across the board. Increases in mortgage rates and spiralling rents have added to the financial burden of many households. Rising food prices and the cost-of-living crisis have a greater impact on such households, leave them at greater risk of poverty and result in a significant fall in their standard of living. Many in my constituency of Dublin North-West are experiencing hardship as they are unable to keep up with rising energy prices and the rising cost of groceries. Such households are disproportionately affected by this crisis. There are real long-term consequences for many of these struggling families. It is affecting their well-being and mental health, especially as they sink deeper into debt and arrears. The longer the Government waits to respond to this energy emergency and to implement measures, the greater the risk of families falling into poverty. The Government must not be complacent at a time when people are struggling. The least it can do is to increase social welfare and pension payments and ensure savings by retail groups are passed on to consumers. The Minister of State must inject a sense of urgency into addressing this crisis.

Mark Ward (Dublin Mid West, Sinn Fein)
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I begin by thanking my colleague Deputy Louise O'Reilly for the work she did on this motion. I also wish the Minister of State all the best in his new role and more importantly I hope he will take a hardline approach in his meeting with retailers during the week.

The Government is out of touch with the struggles of ordinary workers and families. I will explain why. I will talk about one of the most successful grassroots community initiatives in my area, namely the Clondalkin Cares Food Bank. To the Government's shame, a food bank is very successful in my area. The Clondalkin Cares Food Bank is available to support any person experiencing food poverty, no matter what the reason. There are a multitude of reasons people access the service but the cost of living is number one. It was originally set up in Clondalkin, but has expanded into Lucan, Palmerston, Brittas, Saggart, Rathcoole and Newcastle in the past year or so.

Some 600 people are dependent on this food bank every week. The food bank is based in Quarryvale Family Resource Centre and it is run by Karen Johnson and her team. I met Karen in Buswells Hotel at the launch of the centre's annual report and I want to thank all those involved for all the work they do on behalf of my community.

The pressure ordinary families are feeling in my area, just to put food on the table, cannot be overestimated. I am aware of people in my area who go to do their shop on a daily basis and they go to the section in the shop where the food is out of date either that day or the next day because they will get a reduction on the prices. They work out those times and do that simply to cut down on the spiralling increase in costs. Grocery prices have increased by 17% in the past year and the Sinn Féin motion calls on the Government to do all in its power to ensure savings made by supermarkets and large food retailers are passed onto the consumers through lower grocery prices.

Mental Health Reform also contacted me today to inform me of the cost-of-living problems, which I know about, faced by people living with mental health difficulties. People with psychosocial disabilities, who are living with long-standing mental health difficulties, have higher costs of living and are at risk of living in consistent poverty. The Cost of Disability in Ireland report of 2011 showed that the average cost of having a mental health difficulty is between €9,000 and €13,000 per year. This is additional to the general costs of living and now there are the additional increases in the cost of living. This is a significant financial burden for these people to bear. This group is more adversely affected by the increases in the cost of living than other groups.

I know the Minister of State said the Government is not opposing this motion, which is to be welcomed, but it is not enough and the Government needs to go further. The Government needs to implement all the actions in the Sinn Féin motion. The Government criticises Sinn Féin all the time for not coming up with solutions. There are solutions in this motion and the Government needs to implement them.

Paul Donnelly (Dublin West, Sinn Fein)
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I want to put this debate into context and I want the Minister of State to write down one figure. The Government could have a budgetary surplus of up to €16 billion.

I am going to read the Minister of State an email I got recently from a constituent. My constituent stated:

I have never had any reason or inclination to contact any TD's or public representatives however the cost of living crisis has left me at my lowest ebb ever. l am on disability and have had to choose between proper meals and turning my heat on, I go to the library most days to stay warm in the day time and then go to bed by 9 so I don’t have to sit in the cold.

My fuel allowance is coming to an end in two weeks and unfortunately, we don’t live in Spain and most people need heating up till the end of May the Government removed 7 weeks of fuel allowance during the financial crisis and only restored 2 weeks over the last few budgets surely this should be restored at the very least.

My electricity bill allowance is still just over €1 per day despite the massive rise in our bills, our bills went up hugely at the start of the Ukrainian war but even though the markets have rallied and energy is being purchased at close to pre-war levels it is still not being passed on to the customer.

Food shopping has increased. Bin charges went up hugely last year...

Brown bins are being charged for and I still remember when I was on Fingal County Council the saying from Fianna Fáil and the Labour Party was that you will only pay for what you throw away. When it was privatised people ended up paying for everything. The above email was signed by "Disillusioned and hungry".

I welcome the Minister of State's intervention. However, does anyone really believe he would be having this meeting tomorrow if it were not for this motion and for the pressure that has been put on Deputies from across the political spectrum by workers and families?

Neale Richmond (Dublin Rathdown, Fine Gael)
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The meeting was arranged before the motion.

Paul Donnelly (Dublin West, Sinn Fein)
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My understanding is that the meeting was supposed to happen next month and that the Minister of State brought it forward.

Neale Richmond (Dublin Rathdown, Fine Gael)
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That one will still happen; this meeting was called last week.

Paul Donnelly (Dublin West, Sinn Fein)
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I have my doubts.

Neale Richmond (Dublin Rathdown, Fine Gael)
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I can show the Deputy the records.

Paul Donnelly (Dublin West, Sinn Fein)
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I welcome that the Government is not opposing this motion. However, I am asking the Government to go further than just appealing to those who have the power over what we pay at the checkouts. It is time for real action and I hope the Government has real action in mind and that there will not be just words from tomorrow's meeting.

Gerald Nash (Louth, Labour)
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To be fair to the Minister of State, I acknowledge that he arranged to organise this meeting last week, which is when he announced it. He brought forward the scheduled 21 June meeting of the retail forum to discuss this most pressing of issues. I congratulate the Minister of State on his appointment. It is the first opportunity I have had to do so in this Chamber. I have no doubt the Minister of State will enjoy the experience. He is working with good officials who put the interests of the country, jobs and enterprise first.

When I first raised this issue last month, the Government showed little or no interest in bringing the supermarkets to heel over the inflated prices customers were paying at the checkouts. Since I started to raise this issue consistently some time ago it has begun to snowball and suddenly it seems all sides of the House are coming around to my thinking and that of the Labour Party on this issue, namely, that we have to do something to tackle the elevated prices of basic grocery items. The supermarkets will have us believe this is some sort of zero-sum game where either the customer pays elevated prices or the primary producers take the hit. However, the truth is that these giant supermarkets and food corporations have plenty of room to manoeuvre on price and still return a more than healthy profit. We know that input costs are stabilising, and falling in many cases, but customers are simply not seeing the benefits they ought to see. The heat applied to the supermarkets on this pressing issue in recent weeks, thanks to the Labour Party’s focus on the issue, has resulted in some action, albeit superficial action, with price reductions on milk and butter, as the Minister of State acknowledged. I fear, however, this is nothing more than an exercise in public relations, attempting to show the public, regulators and Government that the sector can somehow regulate itself but we know this is not the case and the evidence is in our weekly shopping trolleys and baskets.

There is an issue with the lack of price transparency in the goods sitting on our supermarket shelves and that is at the root of the problem consumers are experiencing. For a month I have been consistently calling on the CCPC to initiate an investigation into possible price gouging in the sector. This is not a left-wing conspiracy theory and something we have dreamed up. We can read the data and the research and we understand what the European Central Bank, ECB, is saying, for example. The ECB has made it very clear and it has pointed to excess profit-making in corporations across the European Union as a significant factor in food inflation, which continues to grow at a multiple of the overall baseline inflation rate. When I first raised this issue on the floor of this House with the Taoiseach, he simply tried to bat away the question, expressing his confidence that inflation will fall and that this would, sooner or later, be reflected in reduced prices on the supermarket shelves. As the issue gained traction, there has been a marked change in attitude on the Government benches and I suppose that comes better late than never.

I acknowledge the Minister of State's personal interest in this issue and his public pronouncements in recent days. I have been telling the Government this for a month and it has at last admitted there are weapons at its disposal to tackle elevated grocery prices. We will see what happens this week when the Minister of State meets the retail forum. I hope he will go further than a simple plea to the multiples to bring down their prices. I am grateful the Minister of State acknowledged my function in establishing the retail forum, an important organisation that represents the interests of the most significant private sector employer in this country. About 300,000 plus people are employed in retail but let us not overstate either the significance of what the retail forum can do. We know the retail forum is a consultative forum and is not established on a statutory basis. There are good people involved from academia, industry and other interests and I am happy to back the Minister of State's initiative but we need to see delivery on what is discussed tomorrow. We also need to see timelines for ensuring that as the input costs are reducing we see changes in what consumers are being charged for the things we all depend on.

We need to see something along the lines of what the Greek Government has done in sitting down with the retailers and food industry and agreeing, for example, maximum prices on more than 50 staple items in the weekly shopping basket. My understanding is that the Greek Administration did that late last year. This should happen in concert with an investigation by the CCPC into possible price gouging in the food and grocery sector.

Despite there being a string of regulators in this country, prices are not regulated. This is the case not only in the food and grocery sector but also in the context of energy, telecommunications and mortgages, which could all do with a bit more than the light-touch regulation we see across the economy. We have plenty of regulators in theory, but they have limited capacity and mandate. We do not see a lot of enforced regulation. It is time these consumer watchdogs were given the teeth to bite instead of just barking and whining and hoping industry will come to heel.

Since it is our highlighting of this issue over the past month that has led to the Sinn Féin proposal in this motion, we in the Labour Party of course have no difficulty supporting it. I am glad the Government will not oppose it. We are told constantly that competition is a good thing. I agree. Competition in markets is a good thing. Competition in marketplaces usually manages to bring costs for consumers down. That is what we are always taught. That is the theory, but the practice and the outcome are often not what we expect. Competition is a good thing once it works for the benefit of the ordinary punter, but the big players cannot simply have it all their own way. When markets are abused and customers are exploited, the State and regulation need to step in. I am pleased to see the Government, albeit late in the day, responding to our pleas to focus on this quite literal bread-and-butter issue, but I hope it will go further in delivering a real and lasting solution on this issue until the food industry and the supermarket retailers can demonstrate that they are capable of setting fair and sustainable prices for their products.

As has been stated previously, and as the Ministers of State will acknowledge, this is an issue that disproportionately impacts the less well-off, who, of course, spend a far greater proportion of their income on basic groceries. In a week when the Government is scratching its head wondering what to do with all the excess revenue at its disposal, we cannot countenance that there are working families out there struggling to put food on the table. I point the Ministers of State to yesterday's Social Justice Ireland analysis, which illustrates the extent of the problem and the disparities and gross inequalities we are experiencing in this country. Some 677,000 of our people are living - in Ireland, in 2023, when we are talking about record budgetary surpluses - below the poverty line. I hope the Ministers of State will agree that this is unconscionable. It is immoral, it is unfair, it is wrong and it needs to be put right.

The multinational food producers and the joint supermarket multiples, as I said, have been having it all their own way for far too long. They made a fortune during the pandemic and are seeking to maintain those artificially high prices and profits in a post-pandemic world off the backs of hard-pressed customers. The working people of Ireland - and indeed primary producers - cannot be made to foot the bill for the greed of these giant corporations any longer. It is now up to the Government to use the tools it has at its disposal, tools that the Minister of State, Deputy Richmond, acknowledges, rather belatedly, the Government has to address this situation for once and for all. I note what he said about price controls. Generally speaking, I would be one of the last people to reach for the weapon of price controls. As I said earlier, however, when competition fails and when the market is abused by big players in it, regulation and the enforcement of the regulation that is there need to be used in the interests of consumers. Maximum price orders were legislated for in 2007 by a Government in which the Minister of State, Deputy Callery, served. There is an acknowledgment that in the future markets could potentially be abused and prices may need to be controlled under what the legislation terms "abnormal circumstances". We are living in abnormal circumstances at the moment. There are a number of ways in which the Government can deal with this. For example, it could, as some other governments across the European Union are considering, slap windfall taxes not just on energy companies, which are posting hyper-profits under abnormal circumstances, but on major retailers as well. That has been considered and proposed by the trade union movement across the European Union.

I will conclude by asking the Ministers of State to do the following. They should ask the supermarkets themselves tomorrow to stop guarding their profits like the third secret of Fátima and publish their profits so people can make up their own mind. The Government can request the CCPC to undertake a market analysis of the supermarket sector in Ireland, and I ask it again to do so. I would say to the Government as well to keep in its back pocket the threat of maximum price orders until supermarkets come to heel and do the right thing by consumers who shop with them.

Catherine Connolly (Galway West, Independent)
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I have a list of people who have shown an interest in speaking. I will not read their names out but I am sure they are fully committed to contributing to this debate, which is about to conclude. I am about to go to the Minister of State and then to Sinn Féin to conclude. While I read out a message from the Seanad, the Deputies in question will have a minute to get to the Chamber.