Tom Sheahan (Kerry South, Fine Gael)
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Question 392: To ask the Minister for Enterprise, Trade and Innovation if he will consider amending the groceries order of 2005 to ban below cost selling of alcohol in supermarkets; and if he will make a statement on the matter. [42535/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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I assume the Deputy is referring to the Competition (Amendment) Act 2006 which repealed the Restrictive Practices Act 1972 and revoked the Restrictive Practices (Groceries) Order 1987 (S.I. No.142 of 1987) which rather than banning below cost selling, prohibited below invoice price selling. In effect, the Order had allowed wholesalers and suppliers to determine minimum retail prices being charged to consumers, thereby seriously constraining competition in the grocery trade.

The use of aggressive pricing strategies in any business is a legitimate marketing tool and is the normal outcome of the competitive process. Low cost and below cost selling by a retailer is not of itself an offence unless it involves abuse of a dominant position. A determination on whether a retailer is abusing a dominant position in the marketplace would necessitate a comprehensive investigation by the Competition Authority.

The Authority is the independent statutory body responsible for enforcing competition law in the State and complaints of any alleged anti-competitive practice should be referred to it.

The sale of alcohol, essentially regulated by the liquor licensing laws, which are the policy responsibility of the Minister for Justice and Law Reform, is a matter in which I have no direct function.