Reasonable prices - Retailers lead the way

The price-cutting campaign launched by SuperValu yesterday should be warmly welcomed as another step on the long road to achieving reasonable prices in this country.

The campaign, which emphasises a commitment to Irish suppliers and Irish jobs, promises to reduce the price of the average shopping basket by 23%.

The move follows price cuts by the chain’s main competitors. Tesco, Dunnes Stores, Lidl and Aldi had previously announced price reductions.

People tolerated the image of the rip-off republic for too long. Prices are now falling faster in Ireland that anywhere else in the developed world. The IMF warned this week that this country “is in the midst of an unprecedented economic correction”.

Prices plummeted by 16.4% in the first quarter of 2009. The drop in February, over the same month the previous year, was the largest ever recorded.

Retailers are clearly being squeezed, but the rents and salaries they pay have fallen little since the Celtic Tiger was roaring. There have been calls for the Government to follow the British example in cutting VAT rates. The Government must find ways to encourage the small business sector.

The retail sector has been providing the leadership, but it is for all segments of society to play a part. Government, consumers, and producers all have a role to play, from the farmers to the multinationals.