The Government's decision to scrap the Groceries Order was met with mixed reaction this evening.
The Competition Authority welcomed the announcement, saying the Groceries Order was "one of the most anti-consumer and protectionist devices from the Irish statute book". It said the order was against the interest of consumers and the economy.
A report by the Competition Authority suggested that the average family pays an extra €500 a year because the Groceries Order leads to higher food costs. The authority believes that competition between the likes of Tesco and Dunnes is intense enough to constitute a distinct market from that of convenience stores and corner shops.
Food and Drink Industry Ireland (FDII) said revoking the Groceries Order would "not deliver" for consumers.
'The decision to replace the Groceries Order with UK style legislation will not work for Irish consumers and will damage the Irish food industry," said FDII Director Rosemary Garth.
She said the abolition of the Order would undermine development prospects for the food industry and the independent retail sector.
Fine Gael Enterprise, Trade & Employment spokesman Phil Hogan welcomed the decision but called for the Minister to outline the savings consumers should expect and to announce when legislation would be enacted.
The Green Party criticised the abolishment of the Order, insisting it had "successful in protecting both Irish consumers and local Irish retailers since its implementation."
RGDATA said this evening existing competition legislation needed to be amended if the Groceries Order is to be repealed. RGDATA Director General Tara Buckley said they would be "seeking that the Competition Authority should be both adequately resourced and motivated to adopting a proactive approach to enforcing the new Act".
"The Competition Authority have been one of the most persistent critics of the Groceries Order for years and has promised that consumers will have lower prices and more choice as a result," she said. "It is now up to the Authority to prove itself and to show that it can deliver on the extra responsibilities it has received today."
The Society of St Vincent de Paul said that while it supports cheaper food choices, it does not believe that the repeal will achieve this objective in the absence of wider structural changes.