SOCIAL DEMOCRATS TD Cian O’Callaghan yesterday told the Dáil that Dunnes Stores has “refused to cooperate” with an investigation being carried out by the food regulator.
The Agri-Food Regulator was established in 2023 and promotes “fairness and transparency in the agri-food supply chain”.
However, O’Callaghan voiced concern in the Dáil during Leader’s Questions that it lacks sufficient powers.
In September 2024, the food regulator chair first noted that it required additional powers to obtain supply chain information.
“We have a food regulator whose job it is to shine a light on this, but your government has tied its hands,” said O’Callaghan.
“It can only ask for information, it cannot compel supermarkets or processors to hand over data.”
File image of Social Democrats’ TD Cian O’Callaghan Alamy Stock Photo Alamy Stock Photo
O’Callaghan then said that Dunnes Stores “has already refused to cooperate with their investigation on the price of eggs, fruit and vegetables”.
“The regulator’s chair has pleaded with the government for stronger powers since last year,” said O’Callaghan. “He’s still waiting.”
He said his party colleague Jennifer Whitmore will be bringing forward a Bill to “give the regulator the power it needs” and urged the government to support it.
“Will you stop protecting profiteers and start protecting the public and when will you give the food regulator the powers it needs to stop price gouging?”
O’Callaghan said Ireland has the second highest food prices in the Eurozone, 12% above the EU average, and remarked: “Price gouging is taking place somewhere along the supply chain, someone is pocketing the difference, and people are left to carry the burden.
“The price of bread is up, eggs have increased by 50% and chicken is more than double in price. These aren’t luxuries, they are basics.”
Tánaiste Simon Harris acknowledged that the food regular has informed the Minister for Agriculture, Martin Heydon, that it “requires more enhanced powers to compel businesses to provide information that’s not in the public domain”.
“This relates specifically to the price and market analysis function,” said Harris, “and you’ve referenced some examples where there has been a real challenge or an inability to do that.”
Harris remarked that the Agriculture Minister is “fully committed to ensuring that the regulator is equipped with the necessary powers to fulfil its statutory function”.
“This is somewhat novel in a legal sense,” said Harris, “in terms of trying to get this right and seeking legal advice and making sure that whatever we put in place stands up to the scrutiny of the law.
“There’s been legal scrutiny now of a draft statutory instrument, as I said, the legislation is novel and does exceed the requirements under European law.
“That’s not a reason not to do it, but it does, and it’s essential that anything we do stands up to legal robust scrutiny.”
He said this process is “significantly advanced” and that Heydon “expects to be in a position to sign that draft statutory instrument in the coming weeks”.
O’Callaghan however asked why this process has taken so long when it was flagged over a year ago.
“There’s clear evidence of price gouging and of profiteering taking place, and of the prices of food increasing way above input prices,” said O’Callaghan.
“So when is the government actually going to act on price gouging?”
Harris acknowledged that “there’s been a period of time” between the food regulator requesting these new powers and getting to the point of having a “draft statutory instrument”.
“But I would point out that those reasons are valid because this is a novel area,” added Harris.
“We’re going beyond the requirement under European law and what we do has to be proportionate. We want to avoid any unintended consequences.”
He added that the government increased funding for the food regulator in the last budget and that this funding will “enable them to prepare in terms of those new significant powers, and also hire the staff that will be necessary to do that”.
Harris said he expects that this should be signed “by the end of the year”.
“I do want to give the minister the space just to get this right,” said Harris. “He’s certainly working to try and get this done in a very short period of time.”
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