Minister publishes Travers Report and draft statutory Code of Practice; commences time- limited process of consultationMinister for Jobs, Enterprise and Innovation Richard Bruton TD said today [Wednesday] that jobs and consumers must be prioritised in any proposals to regulate the grocery goods sector. He was speaking as he published on his Department’s website the report of Mr John Travers on the possibilities of agreement on a voluntary Code of Practice in the sector, together with the draft statutory Code of Practice prepared by Mr Travers.
Announcing the publication, Minister Bruton said:
"Today I am taking the first steps towards ensuring fair trading relationships at all levels of the grocery goods sector, in accordance with the commitment in the Programme for Government.
"Jobs are the number one priority of this government, and if we are to achieve the employment growth we so badly need, we must have an efficient grocery goods sector that encourages innovative suppliers and provides a stable environment for small and growing businesses to make investments and expand their activities.
"Ireland needs a strong indigenous food sector and a pathway for producers to export. Retailers must understand that this is a national need, in which they can play an enormous part.
"Regulation of the grocery goods sector is a highly contentious area. There is an inevitable strain in the relationships between suppliers and retailers. These relationships, I believe, must be built on solid principles of mutual opportunity and fair competition. This does not always happen.
"Prices are already too high in this sector, and consumers deserve choice and the chance to buy high quality products at keen prices. My job in large part is to protect consumers and enhance employment across the entire economy. I will ensure that job-creation and the consumer interest – strongly complimentary goals – are at the forefront of this debate.
"I am disappointed that there has not been agreement on a voluntary code, as regulation by government should always be a last resort. Where regulation is imposed it should be forensically designed to avoid unnecessary costs on consumers and businesses, and I am determined to ensure a fair balance.
"I urge all interested parties, including consumers and small and growing businesses in this sector, to share with me their views as to how we can achieve this crucial goal".NOTE TO EDITORS
Mr John Travers was asked by Government to prepare a report on whether a voluntary code of practice could be agreed between the various parties in the grocery goods sector, in order to guard against unfair practices. His report, published today, finds that the parties were not able to agree on the introduction of a voluntary code.
Mr Travers has also drafted, at the request of Government, a proposal for a statutory Code of Practice, which is also published today. The Consumer and Competition Bill, which was approved by Government yesterday and is expected to be introduced to the Oireachtas in the next Dail term, will contain an enabling provision to give a Code the force of law.
Minister Bruton is inviting all interested parties to communicate to him their views on the proposed statutory code by 1st September 2011.