Calls for more detail about planned legislative changes

Opposition reaction: Fine Gael and Labour yesterday demanded details on how the Government proposed to regulate the retail sector…

Opposition reaction: Fine Gael and Labour yesterday demanded details on how the Government proposed to regulate the retail sector, with the Greens and Sinn Féin opposing the abolition of the Groceries Order.

Fine Gael's spokesman on trade Phil Hogan said it was difficult to assess the impact of the Government decision without seeing the details of the legislative changes.

In a statement he said the Groceries Order should be replaced with a new law which "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.

"Minister Martin has agreed with this approach today, but he has not published the detailed changes in the Competition Act, 2002, that will achieve this objectiveWe need the full picture of the legislative changes being considered before arriving at any conclusion regarding the full impact of this announcement."

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Labour's spokesman Brendan Howlin also said that while Mr Martin had announced the end of one form of regulation he had not said what would replace it.

"What is at stake in respect of the retail sector is not whether it should be regulated but how it should be regulated."

There were important social considerations involved.

"It is vital that we act to protect small towns and rural communities which can be destroyed when they lose retail outlets.

"This is a matter of good planning, but also demands effective competition legislation and enforcement. Until the Minister's proposals are spelled out in legislation, we are all in the dark."

The Green Party criticised the plan to abolish the Groceries Order.

Its spokesman for trade Eamon Ryan said: "The Groceries Order has been successful in protecting both Irish consumers and local Irish retailers since its implementation. Over the 18 years that it has been in operation, the products covered by the Groceries Order have had a lower rate of inflation for half of the time than those not covered."

He called on the Minister to bring in legislation to "replace the protections afforded to local retailers, producers and consumers under the Groceries Order".

Sinn Féin's spokesman on trade Arthur Morgan questioned whether the concerns raised by the Society of St Vincent de Paul, the Combat Poverty Agency and Crosscare regarding the impact on low-income families of repealing the Groceries Order had been given proper consideration.

"Sinn Féin supported the retention of the Groceries Order. The order was brought in to address the fact that large supermarket chains would in its absence use 'loss leaders', which are products sold at less than the cost of production, to lure customers into the store and create a distorted impression that the store is cheaper than rivals. Small stores with tight profit margins find themselves unable to compete."