Written answers

Tuesday, 19 May 2009

Department of Enterprise, Trade and Employment

Retail Sector

12:00 pm

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 69: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the decision by a retailer (details supplied) to replace Irish produced products with imported brands in a number of its stores, particularly in the Border area; and her further views on the implications of the move for employment. [19817/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I presume that the Deputy is referring to the recent initiative by the retailer concerned to change the way in which it sources certain internationally branded products. The Deputy will appreciate that the negotiation of commercial contracts is essentially a matter for the contracting parties themselves and that I have no direct function in relation to such negotiations.

Undoubtedly in these difficult economic times, businesses and consumers are finding it more and more challenging to manage their expenditure and costs. For businesses, there is an imperative to reduce costs and streamline operations. This has been the reality for manufacturing firms in Ireland and elsewhere for some considerable time and has brought undoubted benefits to consumers in terms of lower prices for manufactured goods.

The relationships between suppliers and retailers are complex. The Deputy will be aware that I have for some time been engaged in discussions with all the various elements of the retail trade to bring greater clarity as to the reasons for the current differential in north south retail prices, given the impact that this differential is having on employment, business activity, revenue to the exchequer and consumer confidence. As part of this engagement I requested the Competition Authority to carry out a study of the retail import/distribution sector as to how competition is working in the sector and whether any practices or methods of competition are affecting the supply of goods and services in that sector. I received the Authority's report on the 30th April and I am examining its findings.

Whilst recent reductions in consumer prices are indeed welcome, I am mindful of the concerns that have been expressed in relation to the possible implications for employment in Ireland particularly if changes in supply chain arrangements reduce the level of purchases by retailers from Irish producers. It is essential, therefore, that the focus of all those in the sector, whether they be suppliers, manufacturers, distributors or retailers, is on ensuring that the sector delivers in terms of providing the best value for money for consumers whilst also minimising the negative impact of the current trading conditions on employment.

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