Harney urged to act on claims of milk price-fixing

THE Tánaiste was urged yesterday to take action on allegations that an illegal milk cartel was engaged in price-fixing costing consumers millions of euro.

According to opposition parties, the Tánaiste has a duty to protect consumers against price rip-offs. An illegal cartel operating in the dairy industry during the 1990s was involved in price fixing, an investigation by RTÉ’s current affairs programme, Prime Time, claimed earlier this week.

The two biggest companies named in the report, Glanbia and Dairygold, have denied that any cartel was in place. According to Prime Time, the country’s largest liquid milk processor, Glanbia, was the driving force behind the price-fixing cartel, which it claimed pocketed millions at the expense of consumers. The programme also claimed Dairygold, which markets its milk in the Cork area under the brand CMP, was involved.

Describing the revelations as shocking, Labour consumer affairs spokesperson Kathleen Lynch said the claims pointed to shady and shoddy dealings within the milk industry. “The exposure of a range of documents which indicate that price-fixing and market-sharing on a widespread scale is so common are extremely alarming,” she said. That consumers have been ripped off on an ongoing basis for the price of milk was now beyond doubt, Deputy Lynch said.

But the case also raised questions about what other products were having their prices jacked up illegally by producers, Deputy Lynch said. “It is incumbent now on the Tánaiste as the guardian of the consumer from price-fixing and similar practices to indicate what measures she will take to prevent this from happening again.”

Green Party enterprise spokesman Eamon Ryan said the Tánaiste must outline the actions she intends to take in relation to the allegations.