New legislation on groceries sector a welcome development for farmers – McEntee

Fine Gael Meath East TD, Helen McEntee, has welcomed the Competition and Consumer Protection Bill 2014, which has been published today (Monday) by the Minister for Jobs, Enterprise and Innovation, Richard Bruton TD. Deputy McEntee said that the new legislation will offer greater protection to consumers and create a fairer playing field between suppliers and major retailers.

“I have been working with the Irish Farmers Association for a number of months now to address the concerns of its members regarding the losses they are incurring because vegetables and other produce are being sold below cost by major retailers. This new legislation brought forward by Minister Bruton will help to address this unfair practice, and a number of others.

“New regulations being drafted by Minister Bruton in consultation with the Department of Agriculture, will create a more level playing field for supplies and retailers. Retailers will no longer be able to demand goods at unrealistic prices from suppliers, or change the terms of a contract unilaterally. The Bill will also prevent ‘hello money’ being demanded by retailers; a practice which has put small suppliers in particular at a disadvantage.

“This new approach is better for consumers, for jobs and for food sustainability. Selling a bag of carrots for as little as 10 cents isn’t good for suppliers or for consumers in the long run. The Government doesn’t want to fix prices, but it does want to ensure that the supplier-retailer relationship is fair and sustainable.

“I am acutely aware of the pressure farmers in Meath have been under because of the practices being employed by major supermarkets. Large retailers often have the upper hand, meaning they can force small suppliers to bear the cost of promotions or change contracts with little or no notice. The new regulations will rebalance this relationship and, crucially, will be enforceable in law.

“The new legislation will also merge the Consumer and Competition Agencies to create the Competition and Consumer Protection Commission (CCPC), a powerful new watchdog to protect consumers. I am very aware that smaller farmers were calling for an independent Ombudsman to deal with these issues, however it was felt that there would be too much repetition, and the new CCPC will perform the same role as an Ombudsman. Stronger penalties will now be put in place which will help to prosecute wrongdoing and combat higher prices.

“I would like to commend Minister Bruton for his work on this area and I will continue to work with him and the Department of Agriculture as the new regulations governing the groceries sector are finalised.”

ENDS