Seanad debates

Wednesday, 20 November 2013

Report on Grocery Goods Sector: Motion

 

2:05 pm

Photo of Rónán MullenRónán Mullen (Independent) | Oireachtas source

Some expert and informed Members have contributed, and I listened with particular interest to Senator Mary Ann O'Brien and my colleague, Senator Feargal Quinn. I should not name names but they have been in business and have a good deal to say to which we must listen carefully.

I want to make three points, one of which is about profits. I support scrutiny of profits of multiples in particular. I have mentioned Tesco previously. The margin Tesco gains on sales in its Irish operations rose in 2010 and 2011 to 7.2% while at the same time the margin across Tesco worldwide was less than 6%. Even at a time of recession in Ireland, Tesco was pulling more cash out of its Irish stores than anywhere else, and one of its executives in England referred to Ireland as "treasure island" for Tesco.

Second, it would be impossible to leave out the issue of labelling on a day when the Irish Farmers Association has revealed that various brands, which it has named, have been confusing consumers by using Irish labels that suggest they are using Irish pigmeat when the results from its DNA survey showed there is a mixture and that 52% of products are not Irish. I say that as a consumer who looks for Irish products when I go into a supermarket. I feel reassured, for example, when I see Glensallagh product in Lidl that I am buying an Irish product. only to I discover that I am not.

Senator Quinn spoke eloquently about the free market, and he is right, but the free market can only operate where all actors have full information on all available choices. Where there are subtle psychological tricks or deals being done behind the scenes which push Irish suppliers off the shelves because of the "hello" money referred to by Senator Brian Ó Domhnaill, the least we must ensure is that people know what is going on. At an IFA meeting in Mullingar last night, a farmer made a throwaway comment but we all knew what he was talking about. He said the minute one complains to the retailer, one is gone. That is the fear. That fear has to be addressed and the only way it can be addressed, while fully respecting the free market idea, is by providing information to people about everything that is going on. That is why I support the motion.

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