Consumer body calls for end to Groceries Order

The interim National Consumer Agency has claimed that three-quarters of all goods in a typical shopping basket may be more expensive as a result of the Groceries Order.

In a submission calling on the Government to revoke the Order, the agency's chairwoman Ann Fitzgerald said there was no reason to believe its removal would result in the closure of independent stores and chains.

"Retaining the order only serves to help keep Ireland number one in terms of the most expensive shopping basket in the euro zone," Ms Fitzgerald said.

"In the 18 years since the introduction of the Groceries Order, inflation on foodstuffs covered by the order has been 9 per cent higher than for foodstuffs not covered by the order."

The agency's submission to Minister for Enterprise, Trade and Employment Míchéal Martin follows similar calls for the removal of the order from the Competition Authority and the Consumer Strategy Group.

Such moves are being resisted by the business lobbies Ibec and RGDATA, the Irish Congress of Trade Unions and by a large number of TDs within Fianna Fáil and the opposition parties.

Mr Martin initiated his review of the order after the Consumer Strategy Group found that Ireland ranked highest in the euro zone for many consumer prices, but did not rank highest for many business costs.

The Minister will bring a proposal to the Government in the autumn. While he is more likely to amend the order with primary legislation than to revoke it completely, his precise intentions remain unknown.

The consumer agency dismissed the argument that removing the order would result in predatory pricing, market consolidation and price increases for consumers. It said the two Competition Acts introduced since the order was made in 1987 provided controls on predatory pricing.