Written answers

Tuesday, 24 February 2009

Department of Enterprise, Trade and Employment

Grocery Industry

11:00 pm

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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Question 101: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she has received a report from the Competition Authority following the Department's request to the authority to monitor the operation of the grocery trade on an ongoing basis; when she expects to receive this report; when she expects to introduce the required legislation; and if she will make a statement on the matter. [7267/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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Following the repeal of the Restrictive Practices (Groceries) Order 1987 in March 2006, the Competition Authority was requested to review and monitor developments in the grocery sector in light of the new regulatory environment. As I have previously indicated to the Dáil, the Competition Authority presented two reports in March 2008, 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 between 2001 and 2007 by analysis of price data published by the CSO. These reports were noted by Government in April 2008 and were published by the Authority shortly thereafter.

A third Report, 'Retail Planning System as applied to the Grocery Sector 2001-2007', was published by the Authority in September 2008. This report identifies a number of features of the retail planning system that affect competition in the grocery sector. It contains seven recommendations aimed at promoting competition in grocery retailing in Ireland. These recommendations are addressed to my colleague the Minister for Environment, Heritage and Local Government, Mr John Gormley, who has indicted his intention to initiate a review of the retail planning guidelines during 2009. The Authority's Reports do not call for changes to legislation which fall within my area of responsibility and I have no plans to introduce legislation in this area. I would like to advise the Deputy that the three Reports are available on the Authority's website www.tca.ie.

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