Consumers urged to force greater competition

Consumers must shop around for weekly groceries so that they force major retailers like Dunnes Stores and Tesco to compete with each other on prices, a watchdog said today.

National Consumer Agency chief Ann Fitzgerald also said that families who have the time to spend part of their household budget in discount stores like Aldi and Lidl “could save an awful lot of money”.

Ms Fitzgerald was speaking on the issue of competition in the grocery market to the Enterprise, Trade and Employment Committee sitting at Leinster House.

The Government revealed yesterday that it is writing to UK retailers to demand that savings accruing from the current euro/sterling exchange rate are passed onto shoppers in Irish outlets.

Tánaiste Mary Coughlan also held talks on the issue with the retail arm of employers’ group, Ibec.

Ms Fitzgerald today told the Oireachtas Committee that multiples like Dunnes, Tesco, Supervalu, Superquinn, Spar and Centra “did not like” recent price surveys carried out by the NCA because they had an impact on business.

She warned: “If we as consumers are willing to give the major retailers, whether they are Irish or British, a huge proportion of our shopping basket every week, then there is no need for them to compete – they have a captive market.”

She urged people to share the household shopping budget among discount stores or reasonable-priced corner shops.

“You can save real money and you will then force the big retailers to compete,” she said.

“From looking at the sector, we believe the major retailers are fundamentally in a comfortable place. They match each other’s prices rather than under-cutting them.”

Taoiseach Brian Cowen yesterday said that the National Consumers’ Agency will carry out more surveys on price differences in the sterling and euro zones.

The watchdog will also intensify its information campaign to keep consumers better informed on prices.

The Cabinet yesterday discussed the issue at length, at its weekly meeting.

The Tánaiste also gave an extensive briefing to her ministerial colleagues on her contacts with retail and consumer representatives in recent days.

Labour leader Eamon Gilmore raised the issue in the Dáil a week ago when he claimed that UK retailers were profiteering from Irish shoppers.

He told the Dáil yesterday that the Government should introduce legislation or tighter regulation if necessary.

The Taoiseach reiterated that whatever action that can be taken by the Government will be taken following correspondence with the UK retailers.