Written answers

Wednesday, 20 May 2009

Department of Agriculture and Food

Food Industry

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 56: To ask the Minister for Agriculture, Fisheries and Food if he is in a position to regulate retailers in order that market share wars do not end up costing farmers their livelihoods and jobs in the food processing sector; and if he will make a statement on the matter. [20176/09]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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While the relationship between the food industry and the retail trade is essentially a matter between the parties themselves, there are specific provisions in competition law that extend to business relationships, including relationships between suppliers and retailers. These provisions prohibit various anti-competitive practices, including price-fixing, abusing a dominant position, requesting "hello" money and imposing resale price maintenance.

In that specific regard, the House will be aware that the Tánaiste has requested the Competition Authority to conduct a study of the retail import/distribution sector as to how competition is working in the sector and whether there are any practices or methods of competition that are affecting the supply of goods or services. The Tánaiste has recently received the Authority's report and is currently examining its conclusions and intends to publish the report shortly.

The Government appreciates fully the value of the food sector to the Irish economy, not least in terms of the employment provided, and is committed to its ongoing support in terms of investment and innovation. We will continue to work with the industry to address the ongoing competitive pressures and to ensure that the industry continues to produce high-quality food product that is more than capable of competing with any comparable product at home or abroad.

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