Feargal Quinn (Independent)

My company may have been big and nasty because it did sell below cost. I would still sell below cost. This below-cost legislation is unfair as it does not apply to companies that are not based in Ireland. If a company's headquarters is in Düsseldorf or London, the company can do as it likes. The Government can write to the company asking for invoices but a reply will not be forthcoming. A few years ago, the Irish Independent carried a story of a large chain in Ireland that was in breach of Irish legislation, but the Irish operator did not realise this because it happened in Britain. Legislation in Ireland stipulates that suppliers should not be squeezed for lower prices because the practice is not fair, but when the chain undertook a takeover it invoiced all its suppliers, requesting money to cover costs. This came about because such practice was not illegal in Britain. Although it was illegal here, the company did not break the law within the State.

These are a few reasons that if competition is to exist, it must be encouraged. Benefits will come with such competition. As Senator Coghlan pointed out, disadvantages will also come with such competition.

I have just returned from Hungary and I was recently at a grocery convention in the Czech Republic. Last year I spoke at an event in Thailand. In these countries, practically none of the grocery outlets is owned locally. All of them are big international companies. If that type of business in Ireland is desired, it will come about and we will have lower prices. Senator Coghlan will not be able to state that Ireland is the most expensive country in the world. Ireland will not be the most expensive country but the operators we deal with will not be based here. The Minister must make the decision. The groceries order should be abolished because competition will be created, as the grocery retailer will negotiate with the supplier, which will be good for customers. The voice of the customer has not been heard in this area clearly enough. While that would be beneficial, vested interests will howl about the disadvantages of abolishing the order, which is understandable.

The cap on the size of grocery stores is not mentioned in the motion. The limit on the size of stores is 3,000 sq. m. outside Dublin and 3,500 sq. m. in Dublin. The legislation probably makes sense because, as Senator Coghlan stated, in Britain the large stores have soaked up the grocery business in small towns. A choice must be made. If the Government wants to encourage lower prices in the grocery sector, it must abolish the groceries order. I have outlined a number of suggestions regarding how that can be done while protecting the smaller trader. It is the correct course of action because it will restrict international operators from breaking Irish law because they avoid breaking the law by buying abroad. The Minister has four weeks to make a decision. He will receive a report then and I hope he does not heed Senator Leyden's urgings to be cautious after all these years. He should make a decision and put the issue to bed.