Joe Carey (Clare, Fine Gael)
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Question 14: To ask the Minister for Agriculture, Fisheries and Food the recent discussions he has had with the Department of Enterprise, Trade and Employment regarding the introduction of a code of practice for the retail sector; and if he will make a statement on the matter. [43565/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The Department of Enterprise, Trade and Employment consulted closely with my Department in preparing the consultation paper for the public consultation process, which was launched in August last. That Department is currently analysing some 29 submissions received from a range of interests. It is intended that this analysis will inform how best to give effect to the commitment in the Renewed Programme for Government on the issue of such a Code.

The proposed introduction of a Code of Practice for grocery goods undertakings follows public debate on grocery prices and price differentials. The consultation in August was undertaken to address concerns raised about the nature of the relationships between grocery goods businesses and, in particular, the relationships between suppliers and retailers of grocery goods. The questions asked of stakeholders, including consumers, included whether any such Code of Practice should be voluntary or statutory in nature; how it might best be enforced; whether a separate Ombudsman's office should be established; whether there should be a threshold to limit its application, and what impact the application of such a code might have on consumer choice and prices.

Underlying the debate is the increasing concentration of retail power in the hands of a few large supermarket chains. This is an international phenomenon, which has fundamentally changed the balance of market negotiating power in the food chain. And it is one factor, although not the only one, contributing to the declining share of the retail price received by producers. While there is, of course, always potential for some tension in any market relationship, there has been a noticeable trend recently towards greater tension, and even allegations of sharp practice.

The European Commission has recently published a Communication (COM(2009)591) in which it outlines proposals to make the European supply chain more transparent while promoting sustainable and market based relationships. These proposals are being considered initially in the context of the dairy sector by the High Level Expert Group on Milk, which is chaired by Director-General for Agriculture and Rural Development, Jean-Luc Demarty, and comprises Member State representatives. The High Level Group is currently considering submissions from interested parties and will begin preparing preliminary conclusions on contractual relations, bargaining power and transparency in the new year.