Naïve assumptions that grocery bills would be reduced substantially by repealing the Groceries Order and that competition regulations could not be breached, raised serious questions about the decision of the Minister for Enterprise, Mr. Michael Martin.

Naïve assumptions that grocery bills would be reduced substantially by repealing the Groceries Order and that competition regulations could not be breached, raised serious questions about the decision of the Minister for Enterprise, Mr. Michael Martin.

This was the view expressed by Independent TD and MEP Marian Harkin when she challenged the assumption that the Minister’s decision was in the longterm interest of consumers.

“The Minister expects us to believe that the inevitable pressure which his decision will create on indigenous food manufacturers and on the smaller grocery outlets will not ultimately result in reducing competition and raising retail prices”, she said.  The Minister’s decision would result in further pressure by major purchasers on Irish manufacturers either for deeper discounts or bonus payments which the Competitions Authority would be incapable of detecting, she said.

In making his decision the Minister had also further weakened the democratic processes of the Dail by ignoring the advice of the Joint Committee on Enterprise and Small Business which had recommended retention of the Groceries Order.  “This is a serious matter as the Joint Committee had taken extensive evidence from all interested parties before concluding that the Minister would be wrong to repeal the Groceries Order”, Marian Harkin said.

It was evident that the Minister perceived political advantage in taking a decision which appeared to be consumer and voter friendly, she said.  “However like a lot of the smoke and mirrors strokes practiced by this Government this decision will prove before long to be bad for consumers, bad for employment in food manufacturing and retailing and bad for the democratic process”, the Independent TD and MEP Marian Harkin said.