Deirdre Clune (Fine Gael) | Oireachtas source

I am glad to have an opportunity to speak about the report prepared by the Joint Committee on Agriculture, Food and the Marine. When I was a member of the other House some years ago, I was a member of the Joint Committee on Enterprise, Trade and Employment when it examined this whole area. The document we are discussing contains some quotes from a report drawn up by that committee in 2010, which considered the impact the squeeze from the multiples was having on suppliers. There must be an emphasis on balance in this debate. Consumers must be to the fore. More so than ever, consumers are looking for value for money now. There must be a balance between suppliers, those involved in the chain, consumers and the multiples we are speaking about.

Tesco currently has 26% of the grocery market, which represents a decrease of 2% on the figure from earlier this year. Dunnes Stores has 23% of the market. As we all know, Aldi and Lidl have a combined 14.5% of the market but are consistently increasing their share of it. It appears that as part of its latest drive to attract consumers, Tesco is targeting the Aldi and Lidl sector of the market by offering vouchers. I would not say it is a price war. While this is good news for consumers in the short-term, we must consider its long-term consequences. We have had bread wars and milk wars in the past. We will have such events in the future as individual retailers try to increase their market share by targeting their competitors.

It is interesting how Aldi and Lidl have changed and adapted to the Irish market over the years. When they first came here, many of the products and lines on offer in Aldi and Lidl would not have been recognised by Irish consumers because they were foreign. They have changed and adapted. I constantly read reviews and comparisons of items. Aldi and Lidl consistently seem to do very well, inasmuch as their products get four or five stars. They are opening in every small town and urban area in the country, which shows they have a definite target, and the consumer is responding. I do not think anyone can argue with the voice of the consumer in this debate.

Own brands were mentioned by Senator White and in the report. There was criticism of the fact that own brand products are used and that they are giving more power to the retailers. I would agree with the point made by Senator White. One cannot interfere with what retailers put on their shelves. I know this is just a glancing review but when they give their customers an own brand alternative of which nobody knows the source, these products seem to rate consistently and strongly in surveys of quality and value for money. I know consumers respond to that. I do not know whether I would agree with that aspect of the report. Perhaps many own brands are sourced directly from suppliers in this country. What is being offered to the consumer is clear. I do not know whether the State can impose restrictions on that. I look forward to the debate we will have on the legislation amalgamating the Competition Authority and the National Consumer Agency. This proposed amalgamation has been discussed for quite a long time. It arose originally in an effort to reduce the number of quangos, but it serves a better purpose than that. It will be very important to have the balance between competition, which is very necessary, and consumer rights. Without competition, consumers certainly would suffer.

In his speech, the Minister of State outlined the value this new body will have, particularly as an alternative to the proposal that there would be an ombudsman. I know they have had set up an ombudsman for this area in the UK but there is a cost involved in it. We will have this agency that is independent and will regulate the industry. The Minister of State addressed the question of legislating for a code of conduct in this sector, which comes up time and again. I note that he said we are expecting legislation towards the end of this year. I suppose that will be in six weeks' time. Perhaps it will be early next year at this stage. That legislation will regulate conduct and the relationship between suppliers and retailers. The content of that legislation will be very important and will probably give us an opportunity to debate this issue further.

Senator White spoke about the fact that costs have come down. It is clear they have come down here. Food prices are 18% above the EU average when they were 34% above it two years ago. I put that down to consumer demand and consumers looking for better value for money. I visit supermarkets regularly and retailers are definitely responding to consumers' demand and concerns regarding the price, not just of individual items but of their grocery basket as a whole, which remains the same for most households 80% to 90% of the time.

The Oireachtas Committee on Jobs, Enterprise and Innovation and the Oireachtas Committee on Agriculture, Food and the Marine were told that the cost of doing business here is high although the cost has come down, and the National Competitiveness Council will tell us on an annual basis how we are improving in that area. I do not think we will get transparency regarding pricing. I think the best way to do it is through consumer demand and awareness. The media plays a very important role in that.

The issue of alcohol and minimum pricing is very important and I am glad it has been addressed in the report. I attended a conference on this issue. The figures show that if one can increase the price of alcohol, it will have a direct bearing on consumption, especially among young people. I do not think we can ignore the facts. I know the Minister of State at the Department of Health, Deputy White, has proposed to do something in this area. We are looking to see how the Scottish proposals fare now that they are before the European Commission. It is a no-brainer. We need action and to address this serious issue. Perhaps the Minister of State can look at doing something in respect of loss leaders and retailers reducing the price of alcohol to a ridiculous price where in some cases it is cheaper than water. It is a serious issue that I hope will be driven home by the Government.