Government told to act on proposed code of conduct for grocery trade

Food and Drink Industry Ireland meets with Minister Simon Coveney to push the issue
25 July 2013
Food and Drink Industry Ireland (FDII) has stressed the need for the urgent introduction of legislation to establish a statutory code of practice for the grocery sector. The group met with Agriculture Minister Simon Coveney this week to discuss the issue of the proposed code of conduct. The code, which aims to bring balance and fairness to the relationship between suppliers and retailers, has been promised by the government, but the required legislation has not yet been finalised. "Across Europe, authorities are taking steps to better regulate trading relationships to stop large retailers making unfair demands of suppliers," said FDII director Paul Kelly.
"The UK has recently appointed a groceries code adjudicator to enforce their code. The government promised that legislation to introduce an Irish code would be published in the final quarter of 2012, but we are still waiting. Unfair practices include a failure to respect contractual terms, de-listing threats to obtain unjustified advantages and unilateral deductions off-invoice without sound business reasons. In the short term these demands impact on individual suppliers, but ultimately they are also bad for consumers. Consumers are best served by a grocery market that is both fair and competitive, one that offers choice and convenience, and provides an outlet for new products and suppliers," commented Kelly
The FDII says that the introduction of this code is critical for the sustainability of the Irish agri-food and grocery sectors and its ability to provide high quality Irish products, choice and convenience to the Irish consumer at fair prices.
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