Govt repeals Groceries Order

Enterprise Minister Micheal Martin today secured the approval of the government for the eighteen year-old law Groceries Order to be repealed.

The ban on below cost selling was introduced to protect small shops and stop them being driven out of business by big supermarket chains.

Announcing its abolition today, Minister Michael Martin said that it had acted against the interests of consumers for the past 18 years and it was now time for consumer interest to prevail.

The minister also announced that the Government had agreed to strengthen the provisions of the competition act to stop the fixing of minimum retail prices by suppliers, unfair discrimination and the payment of advertising allowances and 'hello money'.

Commenting on the decision, ISME said it opened the way to predatory pricing and below cost selling.

The Association outlined that the decision will have an adverse affect on small retailers and local suppliers, the consequences of which will be reflected in shop closures and job losses.

ISME Chief Executive Mark Fielding said: "Today is a bad day for the consumer as it will lead ultimately to less choice, less quality and less service and will not lead to a price reduction of grocery products.

"In fact, if there is going to be any movement in prices it is upwards when the multiples, who control over 50% of the market, decide to expand their burgeoning empires at the expense of local indigenous businesses."