Written answers

Wednesday, 9 July 2008

Department of Enterprise, Trade and Employment

Grocery Industry

11:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 240: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if, in the view of the recent survey by the National Consumer Agency on the price of grocery goods in the Northern Ireland and the Republic of Ireland, she will request the Competition Authority to carry out a study jointly with the relevant authorities in Northern Ireland, into the basis for the differentials in the price of grocery goods at retail, wholesale and supplier level; and if she will make a statement on the matter. [28123/08]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The Deputy will be aware that I have raised my concerns about the price of grocery goods on a number of occasions recently with the National Consumer Agency and the Retail Association of Ireland.

It continues to be my view that retailers have a duty to their customers and to the economies in which they operate to explain why there are such price differentials between their stores in the two jurisdictions. The Competition Authority has undertaken a study into the grocery market in Ireland. Earlier this year, the Authority published two reports as part of the Grocery Monitor Project. The first report, A Description of the Structure and Operation of Grocery Retailing and Wholesaling in Ireland: 2001 to 2006 provides a description of the market structure at the wholesale and retail levels of the Irish grocery sector.

The second report is entitled Price Trends in the Irish Retail Grocery Sector: A Description of the Evolution of Retail Grocery Prices between 2001 and 2007. In this report, the Competition Authority has considered the impact of the removal of the Groceries Order by examining the evolution of the aggregate retail grocery price trends since 2001, by analysis of price data published by the CSO. A third Report examining the Retail Planning System as applied to the Grocery Sector 2001-2007 was recently finalised.

I have asked Forfás to do an assessment of the comparative costs of operating a retail business in Ireland and how the costs facing retailers could be addressed. The study should be finalized in the Autumn.

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