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Last Updated:
Aug 11, 2009 - 6:30:33 PM |
Coughlan launches public consultation process on the introduction of a Code of Practice for Grocery Goods Undertakings
By Finfacts Team
Aug 11, 2009 - 4:51:28 PM
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Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan, T.D., today launched a public consultation process on the introduction of a Code of Practice for Grocery Goods Undertakings.
The proposed introduction of such a Code of Practice follows what she termed a "significant public debate on grocery prices, north south price differentials and other developments in the grocery goods sector over recent months. It is intended to address concerns raised about the nature of the relationships between grocery goods businesses and, in particular, in the relationships between suppliers and retailers of grocery goods."
She said, “We have witnessed significant change in the Irish grocery goods sector over the past year, resulting in lower prices and better value for Irish consumers at home. While this is a positive result, the Government also fully appreciates the need to ensure that, in this drive for better value, there is transparency and a balance in the relationships between the various players in the grocery goods sector. Any Code of Practice must have as its key objective the need to achieve this balance between all stakeholders, including suppliers, producers, retailers and consumers.”
The consultation asks eight key questions of stakeholders, including consumers, in a consultation paper.
The questions include: whether any such Code of Practice should be voluntary or statutory in nature; how it may best be enforced; whether a separate Ombudsman’s office should be established; whether there should be a threshold to limit its application; and what impact application of such a code may have on consumer choice and prices.
The consultation paper also includes an initial draft outline for such a Code of Practice and seeks views on its provisions.
The deadline for submissions is Wednesday, 30 September 2009 by electronic format to conspol@entemp.ie, or by post to Grocery Code of Practice Consultation, Competition and Consumer Policy Section, Department of Enterprise, Trade and Employment, Earlsfort Centre, Lr. Hatch Street, Dublin 2.
Food and Drink Industry Ireland (FDII), a unit of IBEC, today welcomed the consultation process.
FDII Head of Consumer Foods Shane Dempsey said: “A code of practice and ombudsman are needed to create a sustainable Irish grocery sector, which provides quality goods at competitive rates, while ensuring that producers, suppliers and retailers run viable businesses that contribute to the economy and create jobs.
"A code is necessary to restrict practices that may undermine the supply chain and ultimately risk putting the consumer at a disadvantage, through less competition, less choice and less convenience.
"A code, along with a supermarket ombudsman, would inject certainty into the trading relationship between suppliers and retailers. This would allow suppliers to forecast, invest in new products, maintain services levels and, ultimately, protect jobs."
The experience in Ireland is that the producers generally want to control the markets for goods and services and it was illegal to sell below cost until recently. The law was of course circumvented by giving money to supermarket owners for shelf space.
