Written answers

Tuesday, 3 November 2009

Department of Enterprise, Trade and Employment

Grocery Industry

8:00 pm

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
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Question 201: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she has conducted a survey of Irish suppliers of grocery products to the large supermarkets regarding the conduct of retail trade practices between supplier and supermarket; and if she will make a statement on the matter. [38356/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The nature of the relationships between grocery goods businesses and, in particular, the relationships between suppliers and retailers of grocery goods has been the subject of debate for some time. During the course of that debate I have met with a variety of stakeholders in the grocery goods sector including a considerable number of retailers, suppliers and their representatives to discuss the reality of the relationships in the sector.

The Deputy will not be surprised by the fact that the various stakeholders have different analyses of the dynamics affecting the grocery goods sector and indeed that there are widely different views as to the nature of the practices occurring in the sector and, in particular, as to the fairness/unfairness of those practices.

Whilst contractual and commercial relationships between businesses is essentially a matter for discussion and agreement by the contracting parties themselves, the Government is concerned that there should be 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 consumer's interests.

To that end, the programme for Government contains a specific commitment "to implement a Code of Practice for doing business in the Grocery Goods sector, to develop a fair trading relationship between retailers and their suppliers and to review progress of the Code and if necessary to put in place a mandatory code".

The Deputy may be aware that I launched a public consultation process seeking the views of all stakeholders in relation to the introduction of a Code of Practice for Grocery Goods Undertakings earlier this year. A total of 29 responses were received to the consultation process. These responses are currently being analysed by my Department. It is intended that this analysis will inform how best to give effect to the commitment in the programme for Government.

The Government's efforts in this area are intended to ensure that Ireland continues to have vibrant and successful food and retail sectors, given the role these sectors play in the national economy, whilst also respecting the importance of ensuring that there is a fair balance in the relationships between the various players in the grocery goods sector, which takes account of the interests of all the various stakeholders, including the consumer's interests.

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