Paul Coghlan (Fine Gael) | Oireachtas source

It is always good to hear the expert, Senator Quinn. I welcome the Minister of State to the House and thank him for all his usual courtesy and kindness, as well as for his overview of the position. He did not say a single word with which I could disagree. I compliment Deputy Doyle, Chairman of the joint committee that has produced this report. I agree with him that the farming and food sectors play a huge role in the Irish economy, having particular regard for rural communities. The Irish food and grocery market is a massive player in the economy with a total estimated worth of €7.1 billion in 2011. It is important to bring forward a statutory code to address the imbalance of power in the supermarket-supplier-producer relationship. The report is all about equity and transparency in the producer-processor-retailer relationship, which is vital. The statutory code of conduct is supported by the Irish Farmers Association, RGDATA, which is my nominating body on the Industrial and Commercial Panel, and Food and Drinks Industry Ireland. I am glad the report recommends that small to medium-sized enterprises, SMEs, should be given support regarding any costs that may arise from a statutory code as in many cases, SMEs would not have the resources to deal with such legal issues.

A proposed code of conduct in the grocery goods sector is important in dealing with pricing and the impact on primary and secondary suppliers, support for local produce and labelling. As the Minister of State noted, ensuring a balance in the relationship between the various players in the grocery goods area is extremely important to everyone. Moreover, I accept that voluntary codes do not work. There has been huge strain in the relationship between suppliers and retailers. In previous Parliaments, when I was a member of the Joint Committee on Enterprise and Small Business, I had a lot to do with this issue and was a rapporteur a few times. In the committee's hearings, members found that large multiples had a huge dominance and unfair advantage over suppliers and in the agricultural area in particular, I can remember this with regard to vegetables and other products. In fairness to Senator Quinn, he probably was very honourable because I do not think his firm was mentioned but other large multiples certainly were. I will not go into that today.

I welcome the Government's intention to introduce a consumer protection and competition Bill, which I consider to be vital, to provide for the amalgamation of the Competition Authority and the National Consumer Agency and the implementation of the recommendations of the advisory group on media mergers and amendments to promote competition and consumer legislation, as well as the statutory regulation of a practice that should have been introduced. Although not finalised, as the Minister of State noted it is likely these will take the form of a series of regulations with associated sanctions, rather than a code of conduct. I agree wholeheartedly and this of course links in with the main recommendations of the joint committee, which did very valuable work.

I agree strongly with a point made by Senator Mary Ann O'Brien and my friend, Senator Clune, as I believe do all Members, on minimum prices for alcohol. The use of alcohol as a loss leader must be stamped out. I am delighted the Minister for Health is so conscious and aware of the issue of the misuse of alcohol and I understand he intends to take further steps in this regard. I concur fully with the previous speakers on this subject.