Tommy Broughan (Dublin North East, Labour)
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Question 170: To ask the Minister for Enterprise, Trade and Innovation his plans for a new Fair Trade Bill for producers; the measures he is considering to end predatory practices in the retail sector and introduce transparency on margins and profitability for large retailers; and if he will make a statement on the matter. [12758/11]

Richard Bruton (Dublin North Central, Fine Gael)
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The Programme for Government contains a specific commitment to "enact the Fair Trade Act, which will ban a number of unfair trading practices in the retail sector such as 'hello money' which suppliers have to pay to secure a place for their goods on supermarket shelves". It is my intention to give effect to this commitment by including an enabling 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 a statutory Code of Practice to regulate particular practices in the grocery goods sector.

I have recently received the report of the facilitator appointed by my predecessor to engage with the various stakeholders to explore the possibilities of agreeing a Voluntary Code of Practice to regulate relationships and practices in the Grocery Goods Sector. The report of the facilitator is currently being considered. 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 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.

In so far as the issue of predatory practices is concerned, competition law already prohibits undertakings who hold a dominant position in the marketplace from abusing that position. Predatory practices would include dominant undertakings engaging in predatory pricing whereby prices are set so low to the extent that the competitive process itself is damaged. Persons who have concerns that undertakings in the retail sector or elsewhere may be abusing their dominance in the marketplace by engaging in practices such as predatory pricing should bring their concerns to the attention of the Competition Authority so that they may be investigated.