Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

I thank Senator Moynihan for raising this vitally important issue. I am through the gap of needing baby formula in our household, but it was not long ago that I absolutely empathised with those parents who are seeing the prices rise and rise. The Senator has raised some key issues that require a direct response, and I will get to that. Before I do, I will talk more generally about grocery prices in the State over the past calendar year. This would have been a particularly big issue around June and July when it dominated the headlines. We saw worrying rates of grocery inflation in the State, way above general inflation, and indeed way above the overall 7% on baby formula cited by the Senator. We are seeing grocery inflation ease down. It is between approximately 2.5% and 3% at the moment. That still means prices are going up, but we got a commitment from supermarkets that they would cut prices on essential goods, which they have done. I am not here to champion the supermarkets. I am not here to champion any particular brand, but we saw cuts in particular in essential goods when it comes to foodstuffs and beyond. We saw cuts from each supermarket in the region of between 700 and 800 items in own brand. Own brand is key, in particular when we talk about this area.

In June last the Competition and Consumer Protection Commission conducted a high-level analysis of the overall grocery sector in Ireland. The CCPC report found that there is no excessive pricing in the sector, which the report sets out is a high-volume, low-margin industry. I would welcome Senator Moynihan's letter to the CCPC. Even though it sits on the other side of the Department to the one I work in, I will contact it directly on foot of this debate saying that I too would support such a look at it.

On infant formula specifically, Article 10 of Commission Delegated Regulation (EU) 2016/127 sets out the requirements for promotional and commercial practices for infant formula. This does not make provision for free or low-priced products, samples, special displays, discount coupons, premiums, special sales, loss leaders, tie-in sales or any other promotional gifts, to promote the use of infant formula. These measures are designed so that the marketing and distribution of infant formula does not interfere with the protection and promotion of breastfeeding. While this is well intentioned, it has the knock-on impact that we have a situation where, as the Senator laid out, a customer has vouchers from a particular supermarket we all know and can spend them on most items bar alcohol and baby formula. I think we all agree it is eminently sensible they cannot spend them on alcohol. However, baby formula is a slightly different one. However, as Senator Moynihan will appreciate, breastfeeding policy falls under the remit of the Minister for Health and national health policy, including the Healthy Ireland framework. This is an area we may need to explore, but that gives the reasons.

I turn to the Senator's direct asks. She makes two contradictory requests. I am not getting into a political debate here. We talk about the use of price caps, the use of section 62(1) and then stating an understanding concerning the potential monopolisation of the infant formula market. I think I remember the Senator's colleague Deputy Ged Nash initially mooted the issue of price caps during the summer. That was withdrawn and it was withdrawn by others because where price caps have been introduced in Croatia and Hungary, we have seen the rate of inflation go up to 50% in the case of Hungary and 20% in Croatia. In Spain, where the socialist Government looked at the potential of introducing price caps with regard to grocery inflation in November 2022, there was a massive backlash because this would have led to a massive impact on smaller and rural shops, and there would have been a lack of goods more generally getting into market. It would reduce supply to singular. That is why I am loath to go down the price cap route for any product, to be frank. I am giving the Senator a straight answer to a straight question in that regard.

I am more than happy to take up the issue of supermarket vouchers with the Department of Health, and I would appreciate her engagement with that. Indeed, Senator Flynn might have some thoughts on it as well. I know she has spoken out on related issues. I think the UK's healthy start initiative sounds excellent. There is no reason why we cannot potentially have something achieved in this jurisdiction. I undertake to raise that with the Minister for Health. I will speak to the Senator's final point when I get the chance to come back in.