THE Small Firms Association (SFA) has warned that a price war between the supermarkets could follow the personnel changes between Dunnes Stores and Quinnsworth. But claims that such a war represents a victory for the consumer is "misplaced" according to SFA director Mr Brendan Butler.

A price war now, with the multiples seeking either a cut in suppliers margins or extended payment periods, he argued, "could not be absorbed and a number of small suppliers would either reduce staff numbers or go out of business altogether". If suppliers have to cut back and more people "are condemned to the dole queue, the victory would indeed be hollow".

Mr Butler noted that the 1995 dispute at Dunnes had a severe impact on small suppliers, many of which had exclusive arrangements to supply Dunnes. SFA has estimated the small firms lost £15 million in sales last summer due to the dispute and that there was a further loss of £3 million in December.