Supermarkets to explain why Ireland is being ‘ripped off’

THE big supermarket owners will be called before a powerful Oireachtas committee next month to explain why Irish consumers are being ripped off.

Ireland is the most expensive country in the Eurozone for food, according to a national Competitiveness Council report published last month.

The council found Irish consumer price inflation was almost double that of the other 15 EU states in 2003.

Irish consumer price inflation has rocketed to 17.5% compared to the average in other EU countries of 8.4%, according to the report.

A Fine Gael supermarket survey conducted earlier this year found British chain stores operating here charged Irish consumers an average 20% more for their products.

The Joint Oireachtas Enterprise and Small Business Committee will call in the heads of the main British supermarkets operating in Ireland and ask them to explain why there is such a difference between British prices and prices in Irish supermarkets.

Committee member Fine Gael Deputy Phil Hogan said they decided a major review of the grocery trade was necessary in light of the latest reports.

“The Competitiveness Council report clearly showed that Irish consumers are being ripped off and we want to find out why there is such a variance in prices,” Mr Hogan said.

The grocery trade association RGDATA, representatives of all the main supermarkets as well as Aldi and Lidl have been asked to appear before the Oireachtas committee.

RGDATA chief executive Tara Buckley said they will explain why food is more expensive in Ireland and give the committee a list of services, like electricity, insurance and transport, that push up costs.

Following the hearings, which will begin on November 2, the committee will make recommendations to Government on what action should be taken to reduce prices.

One possible option is lifting the ban on large-scale out-of-town superstores operating in Ireland as recommended by the National Competitiveness Council. RGDATA has repeatedly argued against increasing the size of large superstores.

“The UK experience has shown that large superstores drove independent operators out of the market and reduced competition and ultimately the consumer suffered,” Ms Buckley said.

There is plenty of competition in the Irish market and without the Groceries Order - which bans below cost selling - there would be less, Ms Buckley said.

Fine Gael has taken a particular interest in the rip-off of consumers and has set up a website where the public can log their complaints.

A second survey carried out by Fine Gael’s www.ripoff.ie found a massive gap between farm gate prices and what consumers pay in supermarkets.

The survey found mark-ups of up to 300% in some food products. This was shown in potatoes where a farmer gets 20c a kilo and the product retails at an average of 80c.