Written answers

Thursday, 27 June 2013

Department of Jobs, Enterprise and Innovation

Groceries Order

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Independent)
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149. To ask the Minister for Jobs, Enterprise and Innovation his plans to reintroduce the groceries order to prevent below cost selling of all alcohol products. [31368/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I assume the Deputy is referring to the Restrictive Practices (Groceries) Order 1987 (S.I. No.142 of 1987) which prohibited below invoice price selling of those goods rather than banning below cost selling of certain goods. In effect, the Order allowed wholesalers and suppliers to determine minimum retail prices being charged to consumers, thereby seriously constraining competition in the grocery trade.

Since the repeal of that Order in 2006, no statutory basis exists for me, as Minister for Jobs, Enterprise and Innovation, to make a minimum pricing order.

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 Equality, is a matter in which I have no direct function.

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