Opposition parties seek further details

THE main opposition parties last night called on Enterprise Minister Micheal Martin to clearly indicate his proposals for legislation to replace the Groceries Order.

Mr Martin announced the scrapping of the 1987 ban yesterday, promising he would shortly strengthen the Competition Act to stop unfair price discrimination.

The move was cautiously welcomed by Fine Gael and Labour but greeted with concern by the Green Party and Sinn Féin.

Fine Gael enterprise spokesman Phil Hogan said the order should be replaced with “a new law which would take account of the changes in the Competition Act and modern trends in the grocery trade”.

“The new law, when enacted, should protect our communities from predatory pricing by multiples and ensure choice and diversity in the food sector where multiples and local shops can compete on a level playing pitch,” he said.

But he said it was impossible to assess the impact the impact of yesterday’s decision “without the details of whatever changes are being contemplated in law”.

He called for extra resources for the Competition Authority and a speedy appointment of a new chief executive to replace John Fingleton, who has left.

Labour’s enterprise spokesman Brendan Howlin said: “What is at stake in respect of the retail sector is not if it should be regulated, but how it should be regulated. Minister Martin has now abandoned one form of regulation. We have no clear information on what he proposes to replace it.”

He called for protection for small towns and rural areas which may be in danger of losing retail outlets.

Green Party enterprise spokesman Eamon Ryan criticised the move, saying the “Groceries Order has been successful in protecting both Irish consumers and local Irish retailers since its implementation.”

“Moreover, I cannot understand why now, when there is a growing threat of greater concentration from large retailers, the Minister is seeking the abolishment of legislation that protects smaller retailing groups and suppliers from predatory pricing,” he said.

Sinn Féin enterprise spokesman, Arthur Morgan, questioned the impact the move would have on low income families.

He said that without the order’s protection, “small stores with tight profit margins would find themselves unable to compete”.

“Ultimately communities and consumers suffer as small retailers are forced out of business and people cease to have access to small retailers based in their community,” he said.