Written answers

Wednesday, 17 May 2006

Department of Enterprise, Trade and Employment

Grocery Industry

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 209: To ask the Minister for Enterprise, Trade and Employment if recent indicators suggest price rises at variance with his previous pronouncements during debate on the abolition of the minimum prices order; and if he will make a statement on the matter. [18830/06]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 210: To ask the Minister for Enterprise, Trade and Employment the extent to which food prices in the supermarkets have been reduced in accordance with his predictions prior to abolition of the minimum prices order; and if he will make a statement on the matter. [18831/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 209 and 210 together.

The Groceries Order was in place for many years and was abolished less than 2 months ago. I believe it is much too early at this stage to expect to see any significant impact on the grocery sector. However, I have asked the Competition Authority to monitor the sector and the Authority is currently putting in place a mechanism to track data and trends over coming months and years.

It is important to remember, however, that the Order was abolished for a number of reasons, including the fact that in certain circumstances it criminalised shopkeepers for passing on discounts to consumers. In deciding that the Order should be repealed the Government simply decided to remove an obstacle to competition.

There are many inputs into the final price paid for grocery products by consumers, including many outside our own control. I note that the Central Statistics Office has identified high fuel prices, the introduction of higher interest rates by financial institutions and increased transport costs as some of the main contributory factors to recent price changes.

I expect that the removal of the Groceries Order will stimulate competition and drive increased efficiencies at all levels of the distribution chain from which consumers will ultimately benefit.

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