IFA: Legislation to regulate retailers must include below-cost selling ban
Mr Downey said the bill fails to include a prohibition on below-cost selling. Neither is there any provision to limit the use of own brands by retailers, nor any compulsion on retailers to disclose profits in the Irish market.
On foot of advice from senior counsel Michael Cush, the IFA has tabled several amendments to the competition and consumer protection bill, which was debated yesterday by the Oireachtas Committee on Jobs, Enterprise and Innovation.
The IFA has voiced concern that, as the proposed legislation stands, farmers supplying food to companies with a turnover of less than €50m will not be required to have a contract, which is a major issue for fresh produce producers. IFA wants this €50m figure replaced with €10m, to include others in the food chain. IFA also wants to see provision for payments to be made to suppliers within 30 days.
Mr Downey said: “Enterprise Minister Richard Bruton must learn from the lessons of the past and introduce regulations that will stop the outrageous discounting by retailers that occurred in the fruit and vegetable sector last Christmas, and stop such abuses for good.”
The IFA says the legislation must prohibit ‘hello money’, ‘pay to play’ money, and long term agreements (LTAs) which provide for the payment by suppliers of substantial ‘off-invoice rebates’ and also to prohibit contracts that compel suppliers to incur costs using third-party suppliers specified by the purchaser.
Mr Downey said: “The bill has also failed to provide for ‘retention of title’ for goods delivered until such time they are paid for and does not address the erosion of production prices resulting from the use of tendering rather than contract negotiation for the supply of certain produce.”
IFA is calling for an independent ombudsman, similar to the groceries code adjudicator in the UK, to oversee and implement the proposed new grocery regulations. The IFA also challenged the proposed merger of the National Consumer Agency and the Competition Authority into a new body, the Competition and Consumer Protection Commission.
The IFA argues this authority will not be sufficiently independent to provide anonymity and confidentiality to suppliers who make complaints. The IFA says an independent ombudsman should be appointed by Government to oversee and implement this new legislation.
Fianna Fáil TD, Dara Calleary, and Sinn Féin TD, Padraig Toibin, called for the grocery code to be broadened to protect garden plant suppliers.
