Written answers

Wednesday, 20 February 2013

Department of Jobs, Enterprise and Innovation

Consumer Protection

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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To ask the Minister for Jobs, Enterprise and Innovation the position regarding the introduction of a statutory code of practice in the grocery goods sector; and if he will make a statement on the matter. [9162/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Programme for Government contains a specific commitment to enact legislation to regulate certain practices in the grocery goods sector. I intend to give effect to this commitment by including an enabling provision in the Consumer and Competition Bill. This Bill will also, inter alia , merge the National Consumer Agency and the Competition Authority, update and reform competition law on foot of a review of the operation and implementation of the Competition Act 2002 and give effect to the recommendations of the Advisory Group on Media Mergers, Work on drafting the Consumer and Competition Bill is on-going and the Bill is included in the “A list” in the Government’s current Legislative Programme.

It is important to point out that in introducing a statutory Code the intention is not to protect one stakeholder over another nor is the Code intended to prevent stakeholders such as retailers and suppliers from engaging in robust contractual negotiations as happens in most other sectors of the economy. It is also the case that the Code is not seeking in any way to determine the price of grocery goods. Rather the essential value of the Code is that by regulating problematic practices in the grocery goods sector it seeks to strike a fair balance between the competing interests of the various stakeholders including the interests of the end user, the consumer.

The Government is strongly of the view that it is important to ensure there is balance in the relationship between the various players in the grocery goods sector and that Ireland continues to have robust agri-food and retail sectors, particularly given the importance of these sectors to the national economy. 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.

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Jobs, Enterprise and Innovation the position regarding the merger of the Competition Authority with the National Consumer Agency; and if he will make a statement on the matter. [9237/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Work on drafting the Consumer and Competition Bill is on-going and the Bill is included in the “A list” in the Government’s current Legislative Programme.

In addition to merging the National Consumer Agency and the Competition Authority, the Bill will, inter alia, update and reform competition law on foot of a review of the operation and implementation of the Competition Act 2002, give effect to the recommendations of the Advisory Group on Media Mergers and introduce enabling provisions for a code of practice for the grocery goods sector.

The merger of the two bodies is aimed at ensuring improved co-ordination of the two policy areas. Enforcing both competition and consumer laws will give the newly merged body synergies and efficiencies in carrying out its functions. This will have benefits for consumers due to the existence of a stronger and more co-ordinated body dealing with consumer and competition issues.

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