Grocery body criticises Fingleton's comments

The Chairman of the Competition Authority, John Fingleton has been severely criticised for comments he made in relation to the District Court conviction of Dunnes Stores and Tesco Ireland for breaching the Groceries Order.

Both were fined €20,000 for selling at below cost prices.

Fingleton had been quoted as saying that yesterday’s ruling made it clear that the Groceries Order was contributing to high prices by preventing retailers like Tesco and Dunnes from engaging in real competition.

Ailish Forde, the Director General of RDGATA has claimed that the comments made by

Dr Fingleton were providing succour to companies that were convicted of breaching the law.

Forde said today: "Dr John Fingleton has an obligation to act responsibly in his role. He is the Chairman of a statutory body that is conferred with authority by the Oireachtas.

"He and his colleagues on the Competition Authority might not like the Order, but as an officer of a statutory body he has a responsibility to respect the law."

Forde also claimed that Dr Fingleton’s comments betrayed a fundamental ignorance of the Grocery trade and the Groceries Order.

RGDATA also rejected Dr Fingleton’s assertion that Irish food prices were the highest in the European Union and claimed that his analysis was fundamentally flawed.

"High costs contribute to high food prices. Most of the costs are from sectors of the economy where there is inadequate or non-existent competition, such as banking, insurance, and professional services.

"What we need from Dr Fingleton now is more action on the areas within his area of responsibility and less pontificating about sectors that are competitive and dynamic," Forde added.

Dunnes and Tesco face similar action next month over the cost of nappies in their stores.