Seanad debates

Thursday, 10 July 2014

Competition and Consumer Protection Bill 2014: Committee Stage

 

3:15 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

This amendment seeks to include a statement in section 63B(1) to the effect that the Minister should include the importance of, and impact on, the economic viability and sustainability of primary producers of decisions made at processing and-or retailing level when considering introducing regulations.

On the first element of this proposal, this would introduce the concepts of viability and sustainability which, almost by definition, imply a guarantee of certain economic returns. The second element adds a causation effect to decisions at processing and-or retail level. This is a clear attempt to shift the balance in favour of the primary producers at the expense of the processing or retail sectors.

This amendment is not an appropriate one for a Bill that aims at regulating certain practices. It does not and cannot guarantee prices or, consequently, sustainability or viability. It should also not be prejudicial in its considerations of where cause and effects lie when trying at the same time to introduce fairness, openness and transparency into the process.

The Government is strongly of the view that it is important to ensure there is balance in the relationship between the various players in the grocery goods sector and that Ireland continues to have robust agrifood and retail sectors, particularly given the importance of these sectors to the national economy. Regulation of certain practices in the grocery goods sector is intended to achieve such a balance taking into account the interests of all stakeholders in the grocery goods sector, including the interests of the consumer and the need to ensure there is no impediment to the passing-on of lower prices to consumers. This balance is important.

In the context of the proposed amendment, it is worth noting that section 63B(1)(f), which was a Government amendment introduced on Report Stage in the Dáil, recognises "the economic importance to the State of the production, supply, distribution, wholesale and retail sectors in respect of grocery goods". In addition, section 63B(1)(g) gives recognition to the importance of “the development and maintenance of strong, innovative, efficient and competitive production and supply bases in the grocery goods sector”. As this Bill cannot guarantee prices, economic viability or sustainability for any part of the grocery goods sector, I cannot accept the amendment.

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