Written answers

Thursday, 9 March 2017

Department of Agriculture, Food and the Marine

Appointment of Ombudsman

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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40. To ask the Minister for Agriculture, Food and the Marine if he has considered introducing a food ombudsman to ensure transparency in the supply chain; and if he will make a statement on the matter. [12368/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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My colleague, the Minister for Jobs, Enterprise and Innovation, signed The Irish Grocery Goods Undertakings Regulations 2016, which came into effect on 30 April 2016 (S.I. No. 35 of 2016).

The Regulations apply to relevant grocery goods undertakings (RGGUs), that is, food and drink retailers and wholesalers or groups of related companies with a worldwide turnover of over €50 million.

A relevant grocery goods undertaking is required to ensure that all of the terms and conditions of a grocery goods contract to which it is a party, are expressed in clear understandable language and recorded in writing.  The period of notice in relation to the variation, termination or renewal of the contract must be reasonable (Regulation 3). A supplier shall not be required to obtain goods or services from a third party from whom the company received payment for the arrangement (Regulation 6). Restrictions are placed on payment from a supplier as a condition of stocking, displaying or listing a product, and a payment period of 30 days is set down except where provided differently by contract.

Relevant grocery goods undertakings must designate and train members of their staff to ensure compliance with the regulations.  The Regulations are enforced by the Competition and Consumer Protection Commission (CCPC) as provided by Act of the Oireachtas.

Relevant grocery goods undertakings (RGGUs) must submit their first annual compliance reports to the CCPC by 31 March 2017, including a detailed account of compliance, including where a breach or alleged breach of the regulations has been identified by, or notified to them and steps taken to rectify it.

It is important to assess these reports for the first year of operation of the new regime, before considering initiating further legislation.  In this connection it is worth noting that neither the Irish nor the UK Regulations guarantee prices; they regulate practices. I should also say that the question of introducing regulations to outlaw unfair trading practices is at present being considered at EU level, and I am supportive of EU regulation in this area.

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