ACS

Ministers in the Republic of Ireland have launched a public consultation on the introduction of a code of practice for grocery retailers and are asking whether this should be enforced by an Ombudsman.

The move has provoked a debate very similar to the one currently underway in the UK. Minister Ms Mary Coughlan TD said: “We have witnessed significant change in the Irish grocery goods sector over the past year, resulting in lower prices and better value for Irish consumers at home. While this is a positive result, the Government also fully appreciates the need to ensure that, in this drive for better value, there is transparency and a balance in the relationships between the various players in the grocery goods sector.

“Any Code of Practice must ensure that the interest of the consumer is at its core by prioritising the need to enhance consumer welfare and ensuring that there is no impediment to the passing-on of lower prices.”

The need for a Code and Ombudsman has been supported by small business representatives: “We are aware of several instances where small Irish suppliers have been approached and threatened by major retailers seeking exorbitant promotional payments to display their products in retail outlets. This form of ‘hello money’ has become widespread and highlights the bully-boy tactics that these major retailers will use to increase their bottom line” said Mark Fielding, chief executive of Irish Small and Medium Enterprises Association (ISME).

Retail Ireland, representing supermarkets, expressed concern about the measure impeding retailers from delivering the best prices to consumers.

Irish stakeholders have until the 30th September to respond to the consultation
View here: http://www.entemp.ie/press/2009/20090811.htm

Last week the Competition Commission formally recommended the introduction of a Grocery Ombudsman in the UK.