System has failed to halt decline in number of independent retailers

YOUR article headlined ‘Competition laws may destroy small towns, warn TDs’ (October 30) reported on the appearance before the Joint Oireachtas Committee on Enterprise, Trade and Employment by the chairperson of the Competition Authority, William Prasifka, in relation to the grocery market, grocery prices and the retail planning system.

System has failed to halt decline in number of independent retailers

The article reported on comments made by TDs and senators in defence of maintaining the current system of retail planning — but failed to report Mr Prasifka’s responses.

In particular, Mr Prasifka stated that:

* The number of independent retailers was in long-term decline and that the present system was not in fact achieving the stated policy objective of maintaining the existing number of independent retailers.

* Assertions made about the lack of retail shops in Britain is based on a flawed report whose conclusions have been comprehensively rebutted by the 2008 report of the Competition Commission into the grocery market there.

* The Competition Authority recognises the fact that the planning system has an important role to play in taking account of non-competition factors such as environmental and social concerns, but that the proper analysis of competition concerns by planners could in fact enhance their ability to address other relevant concerns — such as sustainability.

The views of the Competition Authority in relation to these matters are available on our website and we would encourage your readers to have a look at the report entitled ‘The Retail Planning System as Applied to the Grocery Sector: 2001-2007’ and also a paper presented recently by Mr Prasifka to the Irish Economic Association in Kenmare which explores the facts behind some of the myths that have been circulating in relation to the issue of grocery retailing in Ireland and Britain, and will help inform the debate on a matter of great public importance.

Clodagh Coffey

Communications Manager

The Competition Authority

Parnell House

14 Parnell Square

Dublin 1

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