Call to abolish supermarket price ban

A BAN on supermarkets undercutting the prices of smaller shops should be abolished to bring more competition into the market, it was claimed yesterday.

Lobby group Consumers Association of Ireland (CAI) said it had generally been in favour of the 1987 below-cost selling legislation but had changed its stance.

“We are rapidly coming to the conclusion that the ban should be abolished,” CAI chairman Michael Kilcoyne said.

A report by Government think-tank the Consumer Strategy Group (CSG) is believed to recommend a removal of the ban to provide more competition and lower prices for consumers.

The CSG, which was set up last year by Tánaiste Mary Harney, is due to be discussed by the Cabinet next month.

Last week, the Joint Oireachtas Committee on Enterprise and Small Business called for the restriction to remain intact to protect suppliers and small grocery shops.

Business lobby groups, IBEC and ISME also strongly favour the status quo.

But Mr Kilcoyne believes the urgent repeal of the Restrictive Trade Groceries Order would now be good for the market.

“It has been my view for some period of time that consumer law in Ireland has taken a back seat.

“I would welcome anything that would lead to enforcement of laws that benefit consumers. We know clearly that the laws in Ireland are much more pro-business than pro-consumer and that needs to change.”

The 150-page CSG report also recommends a powerful independent consumer agency be set up to oversee prices and protect the consumer.

Mr Kilcoyne agreed that such an agency was needed to enforce consumer laws and take whatever action is needed to ensure the consumer gets a fair deal.

“After all, there are far more consumers in this country than there are business people,” Mr Kilcoyne added.

The CSG report also calls for the availability of cheaper generic drugs on prescription and for more liquor licences to be issued.