At last, some relief is in sight for long-suffering consumers following a decision by Minister for Enterprise, Trade and Employment Micheál Martin to revoke the anti-competitive Groceries Order that kept food prices artificially high.
It has taken years of consumer pressure to get to this position. But a ban on the unacceptable practices will not take effect until legislation has been passed to strengthen the Competition Act.
The lack of urgency in the Government's response is nothing new. Four years ago Tánaiste Mary Harney advocated removal of the Order but was stymied by the resistance of Fianna Fáil backbenchers. Since then, a succession of reports from the Director of Consumer Affairs, the Competition Authority and other specially appointed groups drew attention to the anti-competitive aspects of the Order but were fiercely resisted. And, given the political and economic clout of the interests involved, Mr Martin sought further advice. Then, the political climate changed radically when RTÉ's Rip-off Republic programmes were broadcast.
There was, the Minister admitted yesterday, no alternative to revoking the Order. It had acted against the interests of consumers for the past 18 years and it was now time for consumer interests to prevail. The Order had kept prices at an artificially high level, he explained.
As a confession of long-term political connivance with powerful vested interests, it would take some beating. But Mr Martin sought the high moral ground by portraying his decision as "an important day for the consumer". It certainly was a beginning. But it underlined how far this Government has to go in introducing competition and eliminating anti-competitive practices in business and the professions.
Mr Martin made a name for himself two years ago by banning smoking in the workplace. He is likely to attract further positive publicity by this initiative. But there will be resistance and criticism from those directly affected. The Minister will take steps to protect small shopkeepers and producers from predatory pricing, the use of "hello money" and other unacceptable practices by large multiples through changes in the Competition Act. But the bottom line is that profit margins will fall.
Abolishing the anti-competitive Groceries Order has long been identified as a means of cutting inflation and increasing living standards. The Competition Authority estimated that repeal of the legislation will save the average household almost €500 a year in lower food prices. And the poorest households will, proportionately, benefit most. So, what took you so long Mr Martin?