The Government took the first step to meeting its pledge to drop the ban on selling groceries below their wholesale price yesterday. Minister for Enterprise Micheál Martin published proposed changes to the Competition Act that will revoke the Order and strengthen anti-price fixing legislation to protect smaller operators from supermarket chains.
The debate on the legislation, known as the Competition (Amendment) Bill 2005, will commence today in the Senate.
Mr Martin announced that the Government would ditch the below-cost selling ban after the Competition Authority, the National Consumer Agency and the National Competitiveness Council said it was damaging consumers by keeping prices artificially high.
Independent retailers wanted the ban maintained because they claimed it protected them against supermarket chains, who would introduce dramatic cuts in prices and drive small operators out of business.
The changes to the law will revoke the Groceries Order 1987, which bans below-cost selling. They will also outlaw suppliers or producers from specifying the retail price of their products.
They will outlaw "hello" money, demanded by grocers from suppliers to stock their goods and ban retailers from demanding that suppliers subsidise advertising their products.
The Competition Authority will police the provisions. Where somebody breaks the law, injured parties can get court orders preventing them from continuing to ignore its provision and will be entitled to damages.
