Written answers

Tuesday, 7 July 2009

Department of Enterprise, Trade and Employment

Retail Sector

12:00 pm

Photo of Jim O'KeeffeJim O'Keeffe (Cork South West, Fine Gael)
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Question 98: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the evidence of the removal of some Irish products and the downgrading of other Irish products from the shelves of a major supermarket chain (details supplied); and if she has any proposals to deal with the situation. [27459/09]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 134: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which she has identified a trend whereby supermarkets source their products outside the jurisdiction thereby putting Irish jobs at risk; and if she will make a statement on the matter. [28003/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 98 and 134 together.

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 particularly more pressing in these difficult economic times. Nevertheless, I do appreciate 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.

In this regard, the Government is anxious to ensure that we continue to have vibrant and successful food and retail sectors, given the important role these sectors play in the national economy. The Government accepts the importance of ensuring 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.

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