LEGALLY BINDING rules to prevent big retailers bullying their suppliers are to be introduced, Minister for Jobs and Enterprise Richard Bruton has said.
Mr Bruton said he planned to ask for Government approval for a statutory code of conduct governing the behaviour of retailers and their suppliers.
A report commissioned by the Minister has found there was no agreement within the retail sector on a voluntary code. Suppliers have claimed they are often forced to make under-the-counter payments in order to retain the custom of big retailers.
The retailers deny the allegations of malpractice and say increased regulation will push up the cost of groceries.
Mr Bruton said he planned to introduce a statutory code as part of wider reforms to competition and consumer law.
However, he warned the code was not a “magic wand solution”, though there was scope to strengthen compliance with reasonable and fair trading practices.
He said the Government was considering a report by Forfás on the possible abolition of the cap on the size of retail centres, which it committed to examining under the terms of the EU-IMF bailout.
The Government was trying to find a “middle way” between increasing competition in the retail market and keeping the centres of towns as thriving urban cores, he said. In other countries, the construction of large retail centres in out-of-town locations has had a devastating effect on traditional town centre shopping.
Mr Bruton was speaking after attending an announcement by Tesco Ireland that it will create more than 522 jobs across Ireland. The retailer plans to open three new stores and seven smaller express stores.