A statutory code of practice to govern relationships between suppliers and retailers in the grocery trade should be introduced, according to new report from an Oireachtas committee.
The report to be published later today also calls for stringent mechanisms for measuring whether retailers and suppliers are adhering to the code. It was drawn up in response to widespread claims by farmers and other producers that retailers are abusing their dominant position in the grocery market by demanding hidden payments and special deals. Irish-based producers have also claimed their products are being pushed off some supermarket shelves by products directly imported from the UK.
The Committee on Enterprise, Trade and Employment, which includes members from the main parties, says the report will inform the current debate on relationships within the sector.
Yesterday, Tanaiste Mary Coughlan, in her last act before being moved from the Department of Enterprise, Trade and Employment, appointed former Attorney General David Byrne as a facilitator in the development of the code of practice.
Ms Coughlan had said she would introduce a voluntary code to begin with, to be followed by legislation later in the year.
Legislation currently being prepared to merge the National Consumer Agency and the Competition Authority will be altered to include a specific provision allowing for the introduction of a statutory code.
In the interim, the Government says it will explore with all the sides the possibility of agreeing a voluntary code.
Mr Byrne is expected to report back by the summer.