Bernard Durkan (Kildare North, Fine Gael)
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Question 371: To ask the Minister for Enterprise, Trade and Employment the extent to which he has monitored food price increases with particular reference to the price fall he predicted in the aftermath of the abolition of the Groceries Order; and if he will make a statement on the matter. [8905/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 372: To ask the Minister for Enterprise, Trade and Employment the extent to which price increases have been identified in the wake of the abolition of the Minimum Prices Order; and if he will make a statement on the matter. [8906/07]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 371 and 372 together.

Since the abolition of the Groceries Order almost 12 months ago, I have regularly reviewed the Consumer Price Index, which is published monthly by the Central Statistics Office. The CPI includes statistics on items previously covered and not covered by the Groceries Order. Despite the implication in the question, I never predicted that price reductions would result from the removal of the Order nor did I predict any period of time over which such reductions might be expected to occur. I am on record as saying that I expected prices to be lower in the future than they would otherwise be had the Groceries Order remained in force. CSO figures are consistent with this view, particularly when grocery price inflation is compared with overall inflation. The Consumer Price Index for January shows that the prices of products previously covered by the Groceries Order fell by 1.2% in the ten-month period from April 2006 to January 2007 while during the same period, prices of products not covered by the Groceries Order rose by 2.4%. The overall impact on all groceries prices (Groceries Order and Non-Groceries Order items) is a decrease of 0.4% in the same period. The real benefits however will be felt over time, as price competition re-emerges at retail level in the trade.

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. I am anxious to ensure that the benefits of removing the Order are not thwarted by the emergence of other anti-competitive practices. That is why, for example, the Competition Act 2006 prohibits practices such as resale maintenance, which were institutionalised by the Order. It would be damaging to consumer interests if such practices were to emerge within the grocery trade in another guise. 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. The Authority's monitoring of the sector is ongoing but I understand it believes it is too early to reach any conclusions. Next month, one year's worth of data will be available for analysis and I understand the Authority intends to publish, later in the year, an analysis of developments in the grocery sector focusing on pricing trends, market structure and barriers to entry. Thereafter further analyses will be published annually for as long as necessary.