Small firms and farmers fight to keep Groceries Order

Small business leaders and farmers' representatives yesterday called for the retention of the Groceries Order, which bans below-cost selling of goods.

In separate submissions to Minister for Enterprise Trade and Employment Micheál Martin, the Irish Small and Medium Enterprises (Isme) and the Irish Farmers' Association (IFA) said that revoking the order would lead to less choice, higher prices and greater concentration in the marketplace.

Chief executive of Isme Mark Fielding said that contrary to the arguments put forward by the Consumer Strategy Group, the price of grocery products covered by the order had remained consistently below the rate of inflation.

"If the ban on below cost selling was rescinded, it would have a devastating impact on independent retailers and small manufacturers in particular, leading to greater concentration in the marketplace, as the major multiples will use below-cost selling to restrict competition," he said.

IFA president John Dillon, said it recommended amending some aspects of the Groceries Order, including bringing all fresh produce within its remit. The IFA was also in favour of an extensive examination of margins throughout the food chain. "Farmers . . . have seen their numbers and their incomes fall drastically due to lower farm gate prices and increased production costs," he said. The Government is considering rescinding the order, due to concerns that it harms competition.