Written answers

Tuesday, 19 May 2009

Department of Enterprise, Trade and Employment

Food Sector

12:00 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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Question 90: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will introduce legislative measures, such as fair trade legislation, in order to protect the many thousands of workers involved in the food industry here; and if she will make a statement on the matter. [19815/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I understand the Deputy is referring to legislative measures in the context of regulating the relationship between suppliers in the food sector and retailers. While the purpose of such legislation is to control the business relationship, I am aware of concerns that an in-balance in the relationship could have a negative impact on the Irish food sector and on workers in the sector.

In general, contract law, enforceable in the Courts, governs the terms and conditions entered into by contracting parties.

In so far as competition law has an effect on business relationships, this is in the form of a prohibition on anti-competitive practices including price-fixing, applying dissimilar conditions to equivalent transactions with other trading parties thereby placing them at a competitive disadvantage, making the conclusion of contracts subject to acceptance by the other party of supplementary obligations which by their nature or according to commercial usage have no connections with the subject of such contracts, abusing a dominant position, requesting "hello" money and imposing resale price maintenance.

I am aware anecdotally of complaints against retailers abusing their relationship with suppliers and I am also aware that suppliers are reluctant to bring a formal complaint for fear of being de-listed. 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 Competition Authority, the independent statutory agency responsible for the enforcement of competition law in the State. Alternatively, a supplier can bring a private action to the Courts either for breach of the Competition Acts or for breach of contract.

In the absence of a solid complaint backed by evidence, neither the Competition Authority or the Courts, can enforce existing legislative provisions or contracts.

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