Micheál Martin (Cork South Central, Fianna Fail)
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I am not aware of any specific complaints against supermarkets abusing their position in their dealings with suppliers. All complaints of anti-competitive practices should be referred to the Competition Authority as the independent statutory agency responsible for the enforcement of competition law in the State and I urge any supplier who considers that he or she is being treated in an anti-competitive manner to bring his or her complaint to the attention of the Authority.

The Irish retail grocery sector is regulated by the Competition Act, 2002 as amended by the Competition (Amendment) Act 2006. The 2002 Act generally prohibits agreements which prevent, restrict or distort competition. The Competition (Amendment) Act 2006 was introduced to repeal the Restrictive Practices (Groceries) Order, 1987 which prohibited practices such as selling below net invoice price and "hello" money. The removal of that Order sought to introduce greater competition into the grocery trade by allowing retailers freedom to determine the process by which they charge their customers.

The 2006 Act also strengthens the existing provisions of the 2002 Act by prohibiting

the imposition of resale price maintenance in regard to the supply of grocery goods (resale price maintenance is the practice whereby manufacturers or suppliers specify the minimum prices at which their goods may be resold);

unfair discrimination in regard to the supply of grocery goods. This is a reference to a supplier offering preferential terms to one buyer over another even though the transactions involved are equivalent in nature;

retailers or wholesalers of grocery goods from compelling or coercing suppliers into payment of advertising allowances (e.g. where a retailer seeks payment from a supplier in order to advertise the supplier's goods as a means of attracting customers to the retailer's premises);

retailers from compelling or coercing suppliers into payment of 'hello' money (i.e. where a retailer demands a payment from a supplier before agreeing to stock that supplier's products). The circumstances in which the practice will be prohibited include on the opening of a new store, an extension to an existing store or a change of ownership of a store. While I support codes of practice, I believe that these statutory protections, with penalty provisions, set out in competition legislation are sufficient to protect suppliers.