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

These amendments, that call for relevant grocery goods undertakings to disclose the profits of their Irish outlets, refer to a stand-alone provision not related to the regulations that may be made to regulate certain practices in the grocery goods sector. The purpose of this Bill is to regulate the relationship between various parts of the supply chain to ensure there are no abuses and the contract terms are fair and are entered into and negotiated freely. The terms are set out to be fair. The Senators are trying to introduce something new specifically about disclosure of profits.

As has been stated on previous occasions, companies operating in Ireland are free to establish and organise themselves in the most suitable form to promote and run their businesses, provided that they comply fully with relevant national and EU legislation, including relevant legislation on the content of their financial statements. The requirements regarding the preparation and publication of the financial statements of limited companies and groups are determined by the first, fourth and seventh EU company law directives and by the EU Regulation 1606-2002 and international financial reporting standards adopted by the EU under its provisions. These requirements are largely reflected in the Companies Act 1963, the Companies (Amendment) Act 1986 and the European Communities (Companies: Group Accounts) Regulations 1992, as amended. Equivalent requirements apply across the EU. The fourth and seventh directives have been replaced by a new Accounting Directive 2013-34-EU which is required to be transposed by July 2015. The requirements concerning the accounts of unlimited companies are governed by domestic legislation.

The extent to which profits are or are not disclosed is of general application and is not determined on the basis of the sector in which a company or group operates. The requirements under company law are essentially the same for companies or groups that operate supermarkets as they are for companies or groups active in any other sector of the economy. I consider that a disclosure regime targeting a specific sector could be viewed as disproportionate and discriminatory and could have negative consequences in terms of business costs and in attracting foreign direct investment. Thus, I am not in a position to accept the amendment on this issue.

Contrary to what Senator Darragh O'Brien said, Dunnes Stores is a private concern and does not reveal its profits. I do not propose to interfere in the accounting arrangements of different companies in this sector. I seek fairness in the relationships between small suppliers and large suppliers in the grocery chain, regardless of who they may be. The Senator also asked whether a comparison could be made with prices in other jurisdictions but this is easily done. Indeed, the National Consumer Agency provides comparisons of prices of similar goods in different jurisdictions for the benefit of consumers.