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Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: The Minister accepts the need for consultation. We can move into dispute very quickly - more quickly than we may have thought. Will the process of consultation happen before the Bill goes to the Seanad so that we will not have to return in two years' time to deal with the fallout when small producers of garden plants are being hammered by their major buyers without the protection we could...

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: I move amendment No. 47: In page 80, line 18, to delete "€50 million" and substitute "€10 million".The supply chain in the groceries sector has become increasingly complicated. The Bill as it stands would exclude many of those involved in the supply chain who deal with producers. In many cases, wholesalers deal directly with producers, and the various supermarkets deal with...

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: I would like to pick up on the Minister's point about strong players dictating and abusing terms. I suggest they will be able to use this provision to do that. We know who the strong players are. As we speak, they are employing people who are being paid much more money than any of us are getting to go through this Bill and find ways around it. I predict that the strong players will use...

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: Despite everyone's best efforts and intentions-----

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: There are, as everyone knows, cases of abuse in the grocery sector. Last Christmas, produce was sold at prices that did not in any way reflect the value or effort involved in its production.

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: The purpose of the amendment is to ensure greater protection is afforded to producers, especially smaller farmers, in the supply chain.

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: This is to do with what we have been saying, that at the base of every supplier industry is a producer but that this has been lost in much legislation because of the new forms of business and distribution. The amendment seeks to return producers to their proper place and give them protection.

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: I take a similar view on this. In regard to amendment No. 51, at a previous committee meeting the Minister attended and at which we conducted an investigation into the grocery market, we were treated to two days of fiction that would make Enid Blyton proud on the so-called difficulties of some of the operators in the Irish market. When they were pushed on profit levels and margins, they all...

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: For as long as we give them the green light on this, and for as long as they are not held accountable for their financial model, which underpins the way they do business in this country, such companies will simply run a coach and four through this Bill, all of the associated provisions and all the grocery goods legislation. In his heart of hearts the Minister knows that. If it is a European...

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: Reference was made to abuses of practice. The ultimate abuse is that we know who is responsible and they are able to do that because of the kind of money they are making in the market. We all know they are making big money but we do not know how much. That is what funds the abuse and their ability to abuse market share. It strikes me as very odd that they must declare these figures in...

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: I move amendment No. 51: In page 81, between lines 37 and 38, to insert the following: “(2) All retailers defined as relevant grocery goods undertakings shall disclose their profits in the Irish market.”.

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: I move amendment No. 52: In page 81, between lines 37 and 38, to insert the following: “(2) The Minister, having regard to subsection (1) may, from time to time, give a direction that a retailer shall not sell grocery goods at a price that is less than the net invoice price of the goods.”.Based on a previous discussion I know where this amendment is going. The Minister has...

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: I realise that the functioning of the market is very important, but if that functioning is having a damaging impact on society, it must be restrained. It is not appropriate for the Minister to pass the ball to the Department of Health on this issue. If that Department comes back and states below-cost selling of alcohol must be outlawed, which it might do, it will fall back on the Minister...

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: Where is the protection for the small supplier? The Minister's Department has an innovation remit. It should be encouraging small suppliers and the employment they provide but, instead, it is not giving them any protection. They are being walked over and the Department is allowing this to continue.

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: What I am proposing is allowing them to-----

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: In the Minister's ideal world everybody can compete on price. What we have, however, is not ideal. Instead, we have a number of large multiples using their size and market power which we cannot measure because we do not know what their profits are to abuse the price relationship between supplier and retailer. There is no sense in a small business owner trying to negotiate prices with a...

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: I move amendment No. 53: In page 81, between lines 37 and 38, to insert the following:"(2) Subject to a grocery goods undertaking choosing to enter into a contract, relevant grocery goods undertakings shall have a contract with a grocery goods undertaking for the sale or supply of grocery goods.". The purpose of this amendment is to ensure that anybody who wants a contract has the legal...

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: I will withdraw it if the Minister intends to reflect on the issue for Report Stage.

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: I move amendment No. 55: In page 81, between lines 39 and 40, to insert the following:"(a) specify that payments for grocery goods supplied to relevant grocery goods undertakings to be made within 30 days,".We have all heard from suppliers who do not get paid for upwards of 60 or indeed 90 days in the supply chain, and there is evidence of this. This amendment seeks to give them the...

Select Committee on Jobs, Enterprise and Innovation: Competition and Consumer Protection Bill 2014: Committee Stage (15 May 2014)

Dara Calleary: When does the Minister envisage the regulations will be available? Will it be before Report Stage?

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