Pádraic McCormack (Galway West, Fine Gael)
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Question 110: To ask the Minister for Enterprise, Trade and Employment his assessment of the effect of the removal of the Groceries Order; and if he will make a statement on the matter. [37944/06]

Ivor Callely (Dublin North Central, Fianna Fail)
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Question 145: To ask the Minister for Enterprise, Trade and Employment if there has been a noticeable alteration of prices in the grocery industry over the past 12 month; and if he will make a statement on the matter. [38017/06]

Ivor Callely (Dublin North Central, Fianna Fail)
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Question 207: To ask the Minister for Enterprise, Trade and Employment the issues that have been brought to his attention since the abolition of the Groceries Order 1987; and if he will make a statement on the matter. [38079/06]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 110, 145 and 207 together.

The Groceries Order was abolished on the 20th March 2006. Recent CSO figures show that the prices of products previously covered by the Groceries Order fell by 0.7% in the seven-month period from April to October. However, food prices have been fluctuating during the past 12 months and while we are seeing a downward trend in some grocery prices, the Consumer Price Index also shows an increase in the price of fresh meat and fish, products which were not covered by the Groceries Order. During the same seven month period prices of products not covered by the Groceries Order rose by 1.5%. Overall the price of Groceries Order and Non Groceries Order items decreased by 0.2% in the same period.

The Order was in place for 18 years and, in that time, it fundamentally altered the structure and composition of the grocery trade. It was abolished primarily because it allowed wholesalers and suppliers to determine minimum retail prices charged to consumers, thereby seriously constraining competition in the market.

I have always maintained that we should not expect to see fundamental changes in the sector in the short term following the abolition of the Order. This is because there are many factors which impact on prices of groceries in our shops. The lack of competition caused by the Groceries Order was only one such factor. Other factors include production costs, labour costs, interest rates, overheads, international exchange rates and so on.

Having said that, some multiples are beginning to pursue competitive pricing strategies and this appears to be having a positive impact on competition in the market. So while I believe that consumers are seeing some benefits from these price reductions, I expect that the real benefits will only be felt over time as price competition increases at retail level.

Following the enactment of the legislation which abolished the Groceries Order, I asked the Competition Authority to review and monitor developments in the grocery sector in light of the new regulatory environment. Since removal of the Order, the Competition Authority has received no complaints of anti-competitive behaviour in the sector, nor has it seen any evidence of such behaviour. Nonetheless, the Authority's monitoring of the sector is on going but I understand they believe it is too early to reach any conclusions.

In April 2007, one year's worth of post Groceries Order data will be available for analysis. Thus by mid 2007 the Competition Authority intends to publish an analysis of developments in the sector focusing on pricing trends, market structures and barriers to entry.

In addition, my own officials are keeping a close eye on developments in the grocery sector and in the past months have brought many issues to my attention, including:

the strong growth showing in the convenience store market segment which comes despite predictions in some quarters of difficulties for this sector following removal of the Groceries Order,

the recognition by one convenience chain that the removal of the Order has not materially affected its operations and leaves it well positioned to "challenge for further growth in the post Groceries Order market environment",

monitoring of monthly CSO figures which I have referred to earlier. The CSO has expanded it figures to include a detailed sub-index of prices of goods previously covered by the Order and those products not covered by the Order,

a Report of the Oireachtas Joint Committee on Enterprise and Small Business on the grocery trade in the UK, which my officials are examining and I will respond shortly to the Committee with views on this Report.

My Department also maintains close contact with interested parties and industry stakeholders and is available to meet with such parties at any time.