Martin’s consumer legislation flawed, says Fine Gael
The party’s enterprise spokesman Phil Hogan TD yesterday called on the Minister for Enterprise Micheál Martin to abandon the new legislation.
He contended its provisions were so vague and weak it would increase the power of bigger retailers in comparison with consumers and suppliers.
“The Consumer Strategy Group claimed the Groceries Order prevented consumers from getting discounts that retailers secure from large suppliers.
“But the minister has now introduced new legislation to repeal the Groceries Order, which contains no mechanism to ensure that these discounts can be passed on to consumers.”
Describing the wording prohibiting anti-competitive pricing as far too vague, Mr Hogan went on to argue: “This will effectively open the door to ‘hello money’, discriminatory practices, price fixing and predatory pricing, the very practices that the minister said he wants to end.
“Mr Martin has adopted a Thatcherite laissez-faire approach to the food industry and seems happy to preside over the decline of the Irish food production sector. Mr Martin is happy to see the Irish food production sector go the same way as the Irish clothing and textile industry.”
But Mr Martin last night rejected Mr Hogan’s claims.
“The Groceries Order was anti-competitive and acted against the interests of consumers,” he said.
He repeated his view that its removal was for the benefit of the Irish consumer. The new legislation, he said, was not lacking or flawed.
“In relation to predatory pricing, it is clearly illegal under Irish competition law and it is punishable by fines of up to €4 million or 10% of turnover,” he said.
“Furthermore, the Competition Authority will have the power and resources to investigate and prosecute any instances of abuse of dominant power.
“Our competition laws are not designed to protect competitors. They are designed to protect competition.”
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