Submissions received on Groceries Order

A significant number of submissions have been received from interested parties about the Groceries Order of 1987 which among …

A significant number of submissions have been received from interested parties about the Groceries Order of 1987 which among other things banned "hello money", the House heard.

The Order was currently being reviewed by the Competition and Mergers Review Group, the Minister of State for Science, Technology and Commerce, Mr Noel Treacy, said. Its terms of reference required it to make recommendations designed to further improve the competition regime in this State in terms of its legislative provisions.

The Order, which banned below-cost selling, had always been a controversial piece of legislation as it essentially seemed to represent interference by the State in the free competition in an important market sector and to set that sector apart from all the other trade sectors. As opposed to that the grocery trade was very important for consumers and also for those who participated in the trade.

He understood the Director of Consumer Affairs had not received any submissions asking for its removal.

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In fact, the only submissions which the Director had ever received about the Order had been campaigning for its retention. Similarly, the Department had not received any submissions looking for the deletion of the Order from the statute book.

Mr Treacy said he understood that since it came into effect more than 60 complaints had been received about alleged breaches.

The members were debating a Fianna Fail motion calling for a review of the Order with particular reference to its effectiveness in eliminating the practice of below-cost selling and the practice by some supermarket chains of absorbing VAT in order to gain competitive advantage.

Ms Margaret Cox (FF) stressed that the small independent retail sector was vital to the economic growth of the country. She welcomed the Minister's announcement about steps to improve the competitive regime.

The Director-General of RTE is being asked to account for what senators from various parties regard as unsatisfactory coverage of Upper House proceedings.

Reacting to complaints yesterday, the House leader, Mr Donie Cassidy, said he had contacted the director's office and he was awaiting a response which he expected today.

Mr Cassidy noted that several members had expressed disgust at the treatment of the House last Tuesday. He wanted the party leaders to meet the Director-General as soon as possible to discuss the problem.

He would also contact the Government chief whip, Mr Seamus Brennan, with a view to having an urgent meeting of the broadcasting committee regarding coverage of the Seanad.