Madam, - Your Editorial of August 1st in support of the views of the National Consumer Agency regarding competition in the grocery market deserves comment.
Last year the Groceries Order was abolished, and to the chagrin of all and sundry, the only commodity that seems to have fallen in price is alcohol. Yet the NCA's acting CEO, Ann Fitzgerald, is still calling for the introduction of further supermarket competition. But the rate of inflation for foods is half the general rate of inflation, not just since the abolition of the Groceries Order, but since 2000.
The facts behind the price differences between independent retailers and supermarkets are not investigated, but the customer is advised what to do about it. Does the NCA believe the independent sector should sell at the same prices as multiple stores - without any regard to issues such as scale or service costs? What about the economic value to local communities delivered by independent retailers? This is ignored in most analyses.
Currently an investigation into the grocery industry in Britain - the third this decade - is showing up some interesting facts: the power of the multiples is increasing and is being reflected in better buying terms to the tune of as much as 13 per cent. At the same time, Britain is faced with the continuing closure of independent stores, with research showing that 43 per cent of villages have no shop! Is Ireland going to be any different? What is the real cost of "more competition"? It includes the closure of all our sugar plants, the outsourcing of most of our biscuit production, the merging and rationalising of countless key suppliers, with off-island sourcing becoming the norm.
Considering these excessive costs of doing business in Ireland, it is a reflection on the efficiency, tenacity and standards of Irish independent retailers that they compete so aggressively in the marketplace.
I paid €1.60 for my Irish Timestoday. I could just as easily have bought a tabloid for 50 cent. I know the price, but I appreciate the value. - Yours, etc,
TERENCE MANGAN, Ennis, Co Clare.