PRESS RELEASE

KELLEHER EXPRESSES CONCERN OVER GROCIERS ORDER

Billy Kelleher today expressed grave concern that the Minister for Enterprise, Trade and Employment might be considering the removal of the groceries order.

“While some economists and experts would argue that the removal of the groceries order would have a positive impact on food prices. The long term repercussions could have the opposite effect.”

“If the groceries order is diluted there initially would be a price war between the large multiple superstores and this could have a major impact on small supermarkets and family owned shops. It could also have an impact on the price that suppliers receive for their produce.”

“The experience in other countries would show that ultimately only the very large superstores would survive a trade war and that this could eventually lead to a monopoly developing in the long term.”

“Ireland is more than an economy it is also a society and if we go down the route of below cost selling we could eventually end up with towns and villages being with out the services of a small supermarket or shop as they would be unable to survive a price war with the large chains.”

“The Minister responsible would be well advised to look beyond the initial short term gain of a reduction in food prices and inflation and look at the long term draw backs of wiping out many smaller supermarkets and small shops and putting Irish food producers at the mercy of a few multinationals as this would inevitably be the case if the groceries order was lifted.”