Jim O'Keeffe (Cork South West, Fine Gael)
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Question 43: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she has caused an estimate to be made of loss of jobs and damage to the economy arising from the activities of a major supermarket chain (details supplied) and in particular in relation to its new purchasing and display policy which discriminates against Irish produced goods; and the action she proposes to take in this regard. [27460/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am aware of the concerns that have been expressed by some commentators in relation to the recent initiative by the retailer concerned to change the manner in which it sources certain products. The Deputy will appreciate that issues in relation to the strategies employed by businesses, including in the area of sourcing supplies, are primarily matters for the businesses themselves. The need to reduce costs and streamline operations at all stages of the supply chain is an established feature of modern business practice. 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. Nevertheless, I am aware 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.

Undoubtedly, the significant downturn in retail sales, as recorded in the Central Statistics Office's most recent bulletin, is putting pressure on all those involved in the retail sector, including retailers themselves and those who supply them, not least in the grocery goods sector. Whilst the reality is that most sectors of the economy are suffering as a result of the current downturn, its effects are more acute in sectors such as construction, the motor trade and the retail sector. Indeed the Quarterly National Household Survey published last month by the Central Statistics Office shows that the wholesale and retail trade as a whole suffered the second largest annual decrease in employment after the construction sector. Given these circumstances it is most important that the primary focus of all elements of the retail chain must be to secure existing jobs to ensure that Ireland continues to have a vibrant retail sector.

In this regard, the Government fully appreciates the importance of successful food and retail sectors to the national economy. The Government acknowledges the need to ensure that there is a balance in the relationship between the various players in the grocery goods sector, which takes account of the interests of all the various parties, including the interests of consumers. My Department is currently working on the details of a Code of Practice in this area which will have as its key objective the need to achieve a balance in the relationships between grocery goods undertakings, taking into account the need to enhance consumer welfare and the need to ensure that there is no impediment to the passing-on of lower prices to consumers.

It is my intention to seek the views of all stakeholders in relation to the details of the provisions of the Code, which I hope to publish for public consultation in the coming weeks. The Code in setting out the framework in which the different elements of the retail chain can enter into negotiations and agree contractual arrangements between themselves will help to ensure that those arrangements are balanced and fair and ultimately ensure that interests of all parties, including consumers, are respected.