Groceries Order - Decision a victory for people power

Enterprise Minister Micheál Martin announced the repeal of the Groceries Order, which banned below cost selling of grocery goods.

He said that he had “no option” as the order, first introduced in 1987, was against the interest of consumers for the last 18 years. Suddenly, he admitted that the legislation was “flawed in a whole host of ways.”

Having tried to savage consumer advocate Eddie Hobbs, who highlighted the damage being done by the Groceries Order in his Rip Off Republic series on RTÉ during the summer, the Government has recognised the imperative of accepting the will of the people.

This is a victory for people power and a confirmation of the success of the Hobbs campaign, which galvanised public opposition to the Groceries Order.

Mr Hobbs argued that the removal of the order should bring the price of groceries down by 20% on three-quarters of the goods that were previously covered.

There is uncertainty about the overall extent to which the public is likely to benefit, but no doubt at all that the consumer will benefit initially.

The Competition Authority suggests that the average family should save €481 a year, but Mr Hobbs contends that the gain is likely to be closer to twice as much at around €1,000.

The extent to which the consumer ultimately benefits will probably depend on the level of competition and the readiness of consumers to facilitate such competition by shopping wisely.