Brian O'Shea (Waterford, Labour)
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Question 64: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to a recent report produced by an organisation (details supplied) which shows that retailers are charging consumers up to five times the price paid to farmers for basic foodstuffs; her views on whether this situation is satisfactory; the steps she will take arising from this report; and if she will make a statement on the matter. [11372/10]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am aware of the report referred to by the Deputy. The Deputy, himself, will be aware, however, that the views of the organization concerned are not shared by retailers. Indeed there are marked differences between the various stakeholders in the food supply chain as to where the balance of power in the sector lies. The Government for its part is concerned that there should be a measure of equilibrium in the sector particularly given its importance to the national economy. Without prejudice to the freedom and responsibility of contracting parties to negotiate and agree their own contractual agreements, the Government appreciates the importance of ensuring that there is a fair balance between the parties to such negotiations.

To that end, the Renewed 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". It is my intention to give effect to this commitment by including a specific provision in the legislation, currently being prepared by my Department to merge the National Consumer Agency and the Competition Authority, which will allow for the introduction of statutory Codes of Practice in areas such as the grocery goods sector. In the interim until the legislation is enacted, I intend in the coming weeks to explore with all the relevant stakeholders the possibilities of agreeing a Voluntary Code which would respect the interests of all parties. It is my view that a Voluntary Code offers stakeholders the opportunity to develop a Code which is appropriate to the dynamics of the Irish grocery goods sector and which in turn could also form the basis of any subsequent statutory Code.

The Government is strongly committed to ensuring that Ireland continues to have vibrant agri food and retail sectors, particularly given the importance of these sectors to the national economy. The Government considers it important, therefore, that there is balance in the relationship between the various players in the grocery goods sector. The introduction of a Code of Practice, as provided for in the Programme for Government, is intended to achieve such a balance taking into account the interests of all stakeholders in the grocery goods sector including the interests of the consumer and the need to ensure that there is no impediment to the passing-on of lower prices to consumers.