Minister vows to ensure new laws are fair on small shops

THE Government last night vowed to ensure fair play between shops after the Groceries Order ban on cut-price goods was abolished. Enterprise Minister Micheál Martin has replaced the order from today with new laws to encourage competition between shops.

He has also drafted in consumer watchdogs and the Competition Authority to report on how the new laws are working.

From today, below-cost selling will be legal but stores will be banned from rogue practices designed to drive competitors out of business.

Last week, the Irish Examiner revealed fresh fears over the future of small shops, which had been protected from the might of supermarkets by the Groceries Order. But Mr Martin insisted: “The Groceries Order acted against the interests of consumers for the past 18 years by keeping prices of groceries at an artificially high level. We will not do industry any favours by continuing to protect it from all competition on domestic markets. That is what the Groceries Order did.

Now he has asked the Competition Authority and the Director of Consumer Affairs to scrutinise the effect of the new laws on the grocery trade.

The Consumer Association of Ireland has encouraged shops to take advantage of the new laws.

But RGDATA, which represents thousands of independent traders, said small shops would be at risk from big supermarkets.

Senior figures in the food industry last night doubted whether the new laws would ensure a level playing field.

Food and Drink Industry Ireland (FDII) director Paul Kelly said: “The key issue is whether the Irish consumer, our food industry and retailers will be operating in a regime which ensures fair trade and prohibits dominance in the marketplace and predatory pricing.

“Now that the Groceries Order is gone, the FDII and the food industry have said this legislation won’t work. It will be impossible to police and action can only be taken after the damage is done.”