Irish shoping

Government Bites a Chunk from Food Bills


Food bills in Ireland are set to be slashed after the government agreed to scrap a controversial restriction on pricing.

Experts say households could save up to €1,000 each year from the axing of Groceries Order — which bars shops selling goods below cost price.

It means supermarkets will be free to slash the cost of scores of goods to entice shoppers into their stores as happens in Britain.

The move comes in the wake of mounting concern over so-called rip-off prices across Ireland.


And consumer champion Eddie Hobbs — whose RTÉ Rip Off Republic TV show galvanised public opinion on the issue — welcomed the move.

He said: “There could be a potential 20 per cent saving on the price of three-quarters of the goods covered by the order.”

Enterprise Minister Micheál Martin’s decision to scrap the Groceries Order came in the face of sustained opposition from some Irish retailers and producers.

He instead ruled the arguments supporting the retention of the order did not stand up to scrutiny.

The controversial rule was originally brought in to prevent large supermarket chains driving smaller shops out of business by selling goods below cost price.

But opponents have argued the bill meant shops negotiating discounts from suppliers by buying in huge quantities were unable to pass the savings on to consumers.

Ireland’s Consumer Strategy Group produced research showing some supermarket chains were getting discounts of up to 18 per cent but were unable to lower their prices accordingly.

But supporters of the Grocery Order say its abolition will merely benefit large British supermarket chains such as Tesco who have massive operations.

Retail consultant James Burke said: “It is obvious to see who could benefit from a change in the law here. A British supermarket with an operation here could potentially undercut the Irish operators and still make a profit.

“Within three to five years the Irish players could be destroyed.”