Groceries Order abolished from today

Minister for Enterprise, Trade & Employment Micheál Martin TD signs order to commence new Competition Act

The Minister for Enterprise, Trade & Employment Micheál Martin TD, has signed the Order to commence the Competition (Amendment) Act 2006 with effect from today, Monday, 20 March 2006. The new Competition Act will finally abolish the Groceries Order, 1987.

Announcing the new legislation, the Minister said: "Very simply, the Groceries Order acted against the interests of consumers for the past 18 years. The single most important reason for getting rid of the Order is that it has kept prices of groceries in Ireland at an artificially high level by allowing suppliers to specify minimum prices below which products could not be sold".

Commenting further, the Minister said, "The reality is that for industry to survive and prosper in a global economy, it must be able to compete with the best. It is essential that we guarantee fair competition. However, we will not do industry any favours by continuing to protect it from all competition on domestic markets. That is what the Groceries Order did. Our competition laws are not designed to protect competitors. They are designed to protect competition. There is a world of difference between the two. We must ensure that competition laws are kept under review and enforced vigorously when needed."

The new legislation also strengthens the provisions of the 2002 Competition Act by specifically prohibiting the fixing of minimum retail prices by suppliers (resale price maintenance), unfair discrimination in the grocery trade, and the payment of advertising allowances and "hello money."

The Minister said he has asked the Competition Authority, in cooperation with the Director of Consumer Affairs, to review and monitor the structure and operation of the grocery trade for the foreseeable future to see how it responds to the new legislative environment.

ENDS/1543