Written answers

Tuesday, 10 March 2015

Department of Jobs, Enterprise and Innovation

Competition and Consumer Protection Commission

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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248. To ask the Minister for Jobs, Enterprise and Innovation if he is satisfied with the operation of proposals, to end unfair practices in the retail sector to date; if he has studied the proposals by the European Union Commissioner for Agriculture to impose fines of up to 1% of retail turnover for unfair practices which impact upon producers; and if he will make a statement on the matter. [10387/15]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I am aware of recent media coverage in which Commissioner Hogan was reported as having indicated his intention to bring forward proposals before the end of this year to address certain issues in the relationships between retailers and producers. Until the EU Commission formally issues any such proposal, and the details are known, it would be premature for me to comment at this early stage.

As the Deputy is aware, the Programme for Governmentcontains a commitment to regulate certain practices in the grocery goods sector and this will be met by way of enabling powers to regulate certain practices in the grocery good sector. These powers are contained in the Competition and Consumer Protection Act 2014. On 22 December 2014, I issued a set of draft regulations for public consultation with a deadline for submissions of the end of February 2015. My Department is currently examining these submissions before the final version of the regulations is promulgated and the regulations are signed into law (as soon as practicable) during 2015.

The new Competition and Consumer Protection Commission will have responsibility for the implementation and enforcement of these regulations.

These national Irish regulations will go much further than the EU voluntary supply chain initiative which has been in operation since September 2014.

As the Deputy will know, I have consistently emphasised 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 regulation of certain practices in the grocery goods sector 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.

Finally, it is important to note that the introduction of any regulations does not, and cannot, guarantee anything in relation to the prices received by any given link in the supply chain. Negotiations on price will remain an issue between the contracting parties as happens in any commercial relationship. What the new regulations will be intended to achieve is to regulate certain practices, not set prices.

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