Written answers

Thursday, 11 October 2007

Department of Enterprise, Trade and Employment

Grocery Industry

5:00 pm

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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Question 101: To ask the Minister for Enterprise, Trade and Employment if his Department has assessed the impact of the abolition of the Groceries Order on the retail sector; and if he will make a statement on the matter. [23189/07]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Following the enactment of the Competition (Amendment) Act 2006 which revoked the Restrictive Practices (Groceries) Order 1987, I asked the Competition Authority to review and monitor developments in the grocery sector in light of the new regulatory environment. Later this year the Authority intends to publish an analysis of developments in the sector focusing on pricing trends, market structures and barriers to entry.

During the debate that surrounded the removal of the Order I indicated that increased competition in the market should lead to prices being cheaper than they would be if the Order remained in place. CSO figures are consistent with this view, particularly when grocery price inflation is compared with overall inflation.

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