Michael Creed (Cork North West, Fine Gael)
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Question 92: To ask the Minister for Enterprise, Trade and Innovation if, in view of the recent reports that suppliers are paying retailers up to €500,000 in hello money, he will bring forward the introduction of a statutory code; and if he will make a statement on the matter. [11930/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The Competition (Amendment) Act 2006 prohibits grocery goods undertakings from engaging in anti-competitive conduct. Specifically undertakings are prohibited from compelling another undertaking to make any payment or grant any allowance for the advertising or display of goods. The Act also places specific prohibitions on retailers from compelling suppliers to make payments for providing space for grocery goods within a newly opened premises/part of a premises within the first 60 days of opening of the new premises. The Act requires that in order for these practices to be considered as prohibited practices they must have as their object the prevention/restriction/distortion of competition. The Act provides that persons aggrieved by prohibited practices have a right of action before the Circuit or High Court. A similar right of action is granted to the Competition Authority.

Deputies and any other parties who have evidence of retailers demanding "hello money", "pay to play money" or other like practices should bring such evidence to the attention of the Competition Authority in order that it can be investigated. The Competition Authority is committed to investigating any anti-competitive practices as thoroughly and as expeditiously as possible.

With regards to the relationship between retailers and suppliers, the Deputy will be aware that 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". The Government will give effect to this commitment by including a specific provision in the legislation, currently being prepared to merge the National Consumer Agency and the Competition Authority, which will allow for the introduction of statutory Codes of Conduct in the grocery goods sector. I expect to publish this legislation later this year.

In the interim period, until the legislation is enacted, the opportunity will be taken to explore with all the relevant stakeholders the possibilities of agreeing a Voluntary Code, which would respect the interests of all parties. A Voluntary Code offers stakeholders the opportunity to develop a Code most suited to the dynamics of the Irish grocery goods sector and which could also form the basis of any subsequent statutory Code. I have appointed John Travers as facilitator, to engage with stakeholders in relation to the drawing up of a voluntary code.