Bernard Durkan (Kildare North, Fine Gael)
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Question 328: To ask the Minister for Enterprise, Trade and Employment if he has satisfied himself that adequate legislative protection exists to prevent the emergence of a monopoly in the retail sector; and if he will make a statement on the matter. [4356/06]

Micheál Martin (Cork South Central, Fianna Fail)
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Part 3 of the Competition Act 2002 is designed to regulate mergers and acquisitions in the economy, including the retail sector of the economy, to ensure that there is no significant lessening of competition in the market.

Under the merger provisions in the Act, parties to mergers and acquisitions that exceed the specified financial thresholds must notify their proposals to the Competition Authority in advance for regulatory clearance.

Mergers or acquisitions which fall below the specified thresholds may be voluntarily notified to the authority for ex-ante clearance so that parties can be assured that their transaction will not be subject to ex-poste proceedings by the authority under section 4 or 5 of the Act.

Part 2 of the Competition Act provides legislative protection to prevent monopolies emerging as a result of anti-competitive agreements, decisions, concerted practices, section 4, or owing to the abuse of a dominant position, section 5.

Accordingly, I am satisfied that the Competition Act provides an adequate legislative regime to prevent the emergence of a monopoly in the retail sector.

Bernard Durkan (Kildare North, Fine Gael)
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Question 329: To ask the Minister for Enterprise, Trade and Employment if competition is positively affecting the consumer here in the retail sector; and if he will make a statement on the matter. [4357/06]

Micheál Martin (Cork South Central, Fianna Fail)
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Competition is the life-blood of a vibrant economy, and the Government is committed to removing unwarranted constraints on competition in all sectors of the economy, including the retail sector.

The retail grocery sector has seen significant changes in recent years, particularly since the entry of discounters Aldi and Lidl. There have been other developments too, such as the opening of 24-hour outlets by food retailers and the stocking of more non-food items to facilitate the way people live today.

I am pleased to see that many Irish firms have faced up to this increasing competition by investing further in their operations and opening more new stores. Such investment is important for improving the services and choices available to Irish consumers. The mix of retail outlets has created a situation where local and international players now coexist in a dynamic marketplace.

However, price competition in the retail grocery sector has been constrained for many years by the Restrictive Practices (Groceries) Order 1987, which prohibits the sale of grocery goods at below net invoice price. That prohibition has had the effect of keeping prices artificially high.

However, one of the main provisions of the Competition (Amendment) Bill 2005, which I recently brought before the Oireachtas, is to revoke the groceries order. I expect that once the order has been repealed, we will see greater competition in the retail grocery sector and that prices will reflect that increased competition in due course.