Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Question 130: To ask the Minister for Jobs, Enterprise and Innovation his plans to address the issue of below-cost selling in supermarkets which is having a serious, negative impact on both primary producers and processing companies; and if he will make a statement on the matter. [1689/12]

Richard Bruton (Dublin North Central, Fine Gael)
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The use of sales promotions and pricing strategies in any business is a legitimate marketing tool and is the normal outcome of the competitive process. I have no direct function in relation to such practices which are matters for retailer themselves and are not an offence unless they involve 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.

As regards the grocery goods supply chain, the Programme for Government contains a specific commitment to enact legislation to regulate certain practices in the supply chain. It is my intention to give effect to this commitment by including a specific 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 statutory Codes of Practice in areas such as the grocery goods sector.

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.