Retail regulations criticised

Retaining the ban on below-cost selling in the grocery sector "smacks of 1930s protectionism" and serves only to safeguard short-term vested interests at the expense of the consumer, the chairman of the Competition Authority has said.

In a strong attack on "anti-competitive" regulations such as the Groceries Order and supermarket planning restrictions, Dr John Fingleton said the idea that low prices were the problem in the retail trade was "mystifying".

"The big problem in these sectors is with high pricing at the moment. I think we have a long way to go before we see people being driven out of business."

Addressing an audience of retail industry chiefs in Dublin yesterday, he said consumer anger at high food prices was justified when comparisons were made with other industries that had faced similar labour, rent and insurance cost increases.

A number of delegates attending the Checkout conference on convenience retailing criticised Dr Fingleton's stance on the issue, claiming that the repeal of controls like the Groceries Order would damage small, indigenous businesses.

Dr Fingleton said fears that revoking protective regulations would lead to predatory pricing, shop closures and job losses did not stand up to scrutiny. "I have heard people say recently that the market will be taken over by foreigners... If people in Ireland want to compete abroad, they have to accept other people competing here."

The conference also learned the results of a consumer survey, commissioned by Checkout magazine, showing a low level of price consciousness among users of convenience stores. Only 41 per cent of respondents said they usually checked the price of goods in convenience stores.

The TNS mrbi poll found that most people were willing to pay a premium for shopping in convenience stores but a lower one than that charged in many instances.