Paudge Connolly (Cavan-Monaghan, Independent)
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Question 394: To ask the Minister for Enterprise, Trade and Employment the steps he proposes to take to ensure that the abolition of the Groceries Order 1987 results in food price reductions for consumers; and if he will make a statement on the matter. [20607/06]

Micheál Martin (Cork South Central, Fianna Fail)
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The Groceries Order was in place for many years and was abolished just over two months ago. While it is too early at this stage to predict what the impact will be, it is important to remember that the Order was abolished for a number of reasons, including the fact that it criminalised shopkeepers for passing on discounts to consumers. Many factors impact on food prices to consumers, including the increased price of oil. In revoking the Order the Oireachtas simply removed an obstacle to competition and I believe that the market will take some time to adapt to the changed legislative environment.

Many submissions received by my Department last year, during the public consultation process on the future of the Order, expressed concerns that anti-competitive practices might develop in the grocery trade if the Order were to be repealed. In the light of these concerns I have asked the Competition Authority to specifically monitor the sector in the coming months and years. I expect that the removal of the order will stimulate competition, drive increased efficiencies at all levels of the distribution chain and produce a consequent downward pressure on retail prices from which consumers will ultimately benefit.