Goodbye To 'Hello' Money From Suppliers

The Government has put forward proposals to put a stop to the practice of 'hello money' in the retail sector through a new code of practice.

A Consultation on the proposed code was launched today to address concerns about unofficial payments between grocery goods suppliers and retailers called 'hello money', among others.

Tanaiste Mary Coughlan Ms Coughlan said: "The introduction of a Code of Practice can provide a transparent framework for business conducted between all undertakings involved in the grocery goods route to market.

"Any Code of Practice must also ensure that the interests of the consumer is at its core by prioritising the need to enhance consumer welfare and ensuring that there is no impediment to the passing-on of lower prices."

The Tanaiste added that she expected the code to help end the disparity between the cost of living in the North and South, which has been responsible for Irish shoppers heading North to make cheaper purchases.

The announcement coincides with the release of a bill by opposition party Fine Gael, who have put forward their Fair Trade Bill, which they say will ban unfair retail practices and save Irish jobs.

Fine Gael Spokesperson on Agriculture and Food, Michael Creed, said: "The forced payment of 'hello money' to large supermarket chains by Irish suppliers is jeopardising thousands of Irish agri-business jobs all over the country."

He added: "I am seriously concerned that food suppliers in this country are being subjected to unfair demands by the large retailers in this country with industry sources suggesting that an estimated €160m in 'hello money' is being paid each year by suppliers hoping to secure their products on supermarket shelves.

The draft of the Fair Trade Private Members' Bill was published by Fine Gael today.

(DW/BMcc)