Committee Reports > List of Committees > Joint > 2000 > Committee on Enterprise and Small Business > Report - Development in Relation to UK Supermarket Trading Practices & Retail Planning

TITHE AN OIREACHTAIS

HOUSES OF THE OIREACHTAS

Joint Committee on Enterprise & Small Business

An Comhchoiste um Fhiontraíocht agus Mionghnóthaí

Tuarascáil maidir le Forbairtí i ndáil le Cleachtais Trádála agus Pleanáil Miondíola Ollmhargaí na Ríochta Aontaithe

Report on Developments in Relation to UK Supermarket Trading Practices & Retail Planning

Meitheamh 2000

June 2000

This Report was prepared by Senator Paul Coghlan on behalf of the Joint Committee on Enterprise & Small Business and was adopted by the Joint Committee on 13th June 2000.

Contents

Introduction and Acknowledgements

Summary of Meetings

Findings

Appendices

1. Introduction

1.1I was appointed as a rapporteur of the Joint Committee on Enterprise and Small Business to visit London and to meet with Members of Parliament, Government Department officials and staff at the Office of Fair Trading and the Competition Commission in relation to the trading practices of supermarkets and retail planning issues. The meetings took place on 14, 15 and 16 March 2000.

1.2I am pleased to acknowledge the assistance of the Committee Secretariat in arranging the visit to London. I would like to pay particular tribute to Ambassador Ted Barrington and Mr Eamonn Carey, Economic Counsellor in the Irish Embassy in London, for their assistance with the visit and in arranging the programme.

Senator Paul Coghlan

30 May 2000

2. Summary of Meetings

14, 15 and 16 March 2000

2.1Met with Ms Gwyneth Dunwoody MP and Andrew Bennett MP. Joint Chairpersons of the House of Commons Environment, Transport and Regional Affairs Committee, and their colleague MPs on the Committee and discussed developments in relation to supermarket retailing and planning issues.

2.2Met Mr Colin Breed MP now Liberal Democrats Spokesman on Agriculture and former Spokesman on Consumer Affairs. Mr. Breed is the author of reports on Supermarket Retailing and Supermarket Dominance.

2.3Met with Mr Michael Bach at the Department of the Environment, Transport and the Regions. Mr Bach was centrally involved in the drafting of the PPGs.

2.4Met Mr Bob Lawrie of the Office of Fair Trading in Salisbury Square. The Director General of the Office referred the grocery retailing sector to the Competition Commission in April 1999.

2.5Met with Ms Margaret Smith and Mr James Jolly of the Competition Commission and received a briefing on the progress of the Commission’s enquiry into supermarkets. Received a copy of a number of documents from the Commission.

3. Findings

The visit was useful and informative. I believe the information included in the appendices will prove to be particularly valuable to the members of the Joint Committee. The views expressed tome by MPS and officials gave an insight to current developments in the united Kingdom.

In particular, I received a copy of a list of “Possible Remedies” issued by the Competition Commission in relation to their supermarkets enquiry. These possible remedies relate

to:

>Competition issues

>Pricing

>Relations with suppliers

The Competition Commission has discussed these possible remedies with representatives of the major supermarket groups. The Commission is expected to report to the Secretary of State for Trade and Industry, Mr. Stephen Byers, MP, in June 2000. The Report is expected to be published in the Autumn.

I found it particularly interesting that among the possible remedies being considered are:

*The restriction of new investment, either in new stores or extensions, by supermarkets in locations where market share was exceeded.

*The prohibition of persistent selling ata loss if the supply base or the products is threatened or where the practice results in higher prices to consumers for other products.

*The prohibition of “Hello Money” - listing fees, shelf access, fees etc.

These are just some examples of a comprehensive list of remedies being considered. These are matters that will be worthy of further consideration once the Competition Commission’s report is published by the Secretary of State for Trade and Industry in the Autumn.