New retailer legislation ‘a waste of time’ unless amended, says IFA
Farmers' group has threatened to withdraw its support for draft grocery legislation unless key amendments are made
Print30 May 2014
The IFA has threatened to withdraw its support for the government’s draft Competition and Consumer Protection Bill, unless it is "substantially strengthened".
IFA president Eddie Downey said: "The draft legislation as it stands will not stop the outrageous 5c/kg below cost selling that seriously destabilised the Irish vegetable sector last Christmas. Neither is there provision for an independent ombudsman to investigate complaints and oversee the behaviour of retailers as regards the grocery trade."
The IFA has identified a number of key amendments that it says are required if the legislation is to be effective.
These include the introduction of an independent ombudsman. This would be similar to the Groceries Code Adjudicator in the UK, whose office costs a total of £800,000 per year and is 100% funded by retailers. The IFA has stressed it has no confidence in the new Competition and Consumer Protection Commission, which will result from the merger of the NCA and the Competition Authority, to act in defence of farmers and growers.
The farmers’ association also wants to see the disclosure of profits in the Irish market of large retail multiples, to improve transparency. It is calling for government to expand the scope of the regulations to cover transactions between producers and suppliers at all levels in the supply chain and to reduce the turnover threshold for relevant grocery goods undertakings from €50m to €10m.
The IFA likewise wants a ban on below-cost selling. It states payments for grocery goods must be made within 30 days and is calling for a ban on contracts that contain payments of ‘hello money’ to get product on shelves, demands for ‘pay to play’ or ‘long-term agreements’, which provide for the payment by suppliers of substantial ‘off-invoice rebates’ at the end of a trading period.
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