Grocers defend Groceries Order

RGDATA, the representative association for 4,500 independent grocers today told an Oireachtas committee that food prices would fall if the high cost of doing business in Ireland is tackled.

RGDATA made its presentation to the Joint Committee on Enterprise & Small Business, which is examining the impact of the grocery multiples on the grocery and retail markets.

"Independent grocers are able to invest in their businesses and compete with the multiples because the Groceries Order bans predatory tactics which would wipe them out," RGDATA told the committee.

"As far our members are concerned there is no great mystery as to why food prices are dearer here than other countries. The plain and simple reality is that doing business in Ireland costs more than elsewhere throughout the Euro zone," RGDATA Director General Tara Buckley told the committee.

"There were no windfall gains being made by independent retailers. The net margin earned by our members averages at 2.65%. This is a very hard-earned profit in a very competitive environment."

RGDATA said it was unacceptable that the large multiples and the discounters did not provide any information about their profits in Ireland.

"The Committee should recommend that large multiples and discounters involved in retailing be compelled to lodge the same type of returns to the Companies Office as RGDATA members are obliged to return. Consumers are entitled to no less," Buckley said.