Martin seeks views on below-cost selling

Minister for Enterprise, Trade and Employment Micheál Martin yesterday admitted that he is likely to face extensive lobbying …

Minister for Enterprise, Trade and Employment Micheál Martin yesterday admitted that he is likely to face extensive lobbying over proposals to abolish the ban on below-cost selling.

Mr Martin confirmed that the Consumer Strategy Group (CSG)report to be launched tomorrow will recommend abolishing the Groceries Order which bans below-cost selling.

He said he would be inviting submissions from interested parties before preparing legislation on the matter.

"It makes very strong arguments in favour of doing that, but what I think will happen is that the CSG report will kickstart the debate into a new phase in a very serious way.

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"I will be inviting submissions from interested parties based on the points raised in the CSG report - people will have to make a very strong case for retention given the cogent case that's been made by the CSG, and it was a unanimous recommendation so I can't ignore it."

Mr Martin said submissions would be accepted over a two to three month period.

He admitted that he expects a large number of representations to be made, including many from TDs in Fianna Fáil and other parties.

"I think people will make their arguments from different perspectives but I think we should try and avoid emotive language. I'm not sure it's going be a doomsday scenario, irrespective of what side of the debate you come down on - there's been a certain overhyping of the issue.

"I respect the right of people to have strong views on it but people need to assess where the retail market is today compared to the 1970s . . . I think we need to take stock as to where we are in 2005 as opposed to 1977," the Minister said.

Mr Martin denied there was any major difference between himself and his predecessor Mary Harney on the issue and said the fact that there had not been any previous move to abolish the ban was due to a collective Government decision.

He said the new National Consumer Agency would be asked to look at the whole debate surrounding the Groceries Order and the issue of below cost-selling.

However, it could take until 2006 to introduce new legislation abolishing the below-cost selling ban.

He would expect the agency to look at the services sector including the issue of the cost of eating out.

"The price of eating out in Ireland is significantly ahead of other EU countries.

"Whereas there are a lot of costs inbuilt in the Irish economy, there are a lot of competitive advantages that Irish businesses enjoy, not least the lower cost of corporation tax," the Minister said.

Barry Roche

Barry Roche

Barry Roche is Southern Correspondent of The Irish Times