Fine Gael has proposed the replacement of the Groceries Order with a new law allowing some below-cost selling, in a significant shift in position.
The party, which had previously supported the retention of the order, yesterday proposed the new legislation after a discussion at its two-day parliamentary party meeting in Portlaoise.
According to the party's enterprise spokesman, Phil Hogan, the law favoured by the party would:
Insist on all discounts to retailers from wholesalers being noted on invoices so they could be passed on to consumers;
Introduce a mechanism to prevent "predatory pricing", the practice whereby major multiples charge below cost for certain goods in order to damage smaller retailers;
Allow special offers and promotions which involve below-cost selling for limited periods.
Mr Hogan said the Competition Authority should be given more resources to enable it to police the ban on predatory pricing. The passing on to consumers of bulk-buying discounts could lead to price reductions of 9 or 10 per cent, he said.
Meanwhile, the Progressive Democrats party has called for the abolition of the Order, claiming it is against the interests of consumers. During a day-long party "think-in" in Dublin yesterday, the Tánaiste and Minister for Health, Mary Harney, said she and her colleagues had debated the issue and the "overwhelming view" was that it no longer served the needs of consumers and should be abolished.
Ms Harney also praised the recent RTÉ television programme, Rip Off Republic, which has been credited for contributing to a public backlash against the Government. She said the show had the positive effect of mobilising consumers against vested interests on this issue. However, she rejected suggestions that it had caused the PDs to call for the order's abolition.
An Oireachtas committee has called on Enterprise Minister Micheál Martin to retain the essence of the order after a review which concluded yesterday. In a statement after the hearing, when the Competition Authority gave evidence in favour of revoking the order, the committee said:
"The evidence given by the Competition Authority is clearly divergent to that given by the Central Statistics Office to the Joint Committee. Accordingly the Minister for Enterprise, Trade and Employment should take great care in drawing conclusions from the tables provided."
It said there was no reliable evidence that removing the order would lead to a fall in food prices.