Code for grocery sector on way

AN INDEPENDENT “eminent” person has been asked to finalise a voluntary code of practice for the grocery goods sector, according to Tánaiste Mary Coughlan.

Ms Coughlan told the Dáil that a statutory code would be put in place if necessary to merge the Competition Authority and the National Consumer Agency.

Mary Coughlan was responding to Labour enterprise spokesman Willie Penrose who said suppliers were being bullied by major supermarket retailers. He highlighted claims that supermarket giant Tesco was demanding up to €500,000 from some suppliers to ensure their products were stocked. “It is not unique to any multiple, sums of money are sought by everybody.”

Mr Penrose, chairman of the enterprise committee, said it had to go to great lengths to talk to people and the unfair practices continued “because nobody wants to stand up and give evidence on the issue”.

He also condemned the Competition Authority as a “failure” and a “waste of space” in the grocery area because it was waiting for evidence to be brought to it, on such demands for “pay to play” money.

“It wants the last person standing, like a Clint Eastwood film with nothing but bushes growing in the ditches and one shop open – a large shop which gobbles up everything else. That is what is happening in the country.”

He also insisted that “voluntary codes mean nothing to the retailers concerned”. A statutory code was required.

Ms Coughlan said there were “polarised views” on a code of practice, but she stressed she would “bring those matters to finality with a voluntary code as a matter of urgency”.