asked the Minister for Industry and Commerce what steps he proposes to take to protect Irish shopkeepers from unfair competition by wealthy foreign interests; if he has made any review of profit margins in the grocery, tobacconist, confectionery and newsagency trades; and if he is aware that these are as low as three per cent of turnover in some cases, and rarely exceed five per cent, and that intensification of competition will cause great distress to many small traders.
Ceisteanna—Questions. Oral Answers. - Protection of Irish Traders.
33.
I have not made any recent review of profit margins in the trades mentioned by the Deputy but I am aware, from the report of the Fair Trade Commission of their inquiry into the grocery trade in 1955, that net profits in that trade are modest. While a competitive situation may create difficulties for individual traders, many small shopkeepers have surmounted these difficulties by effecting cost economies through co-operation and the adoption of new techniques of trading. The small trader can also exploit the advantages of personal service and convenience of location. I do not think that it would be wise in present circumstances to interfere with the free play of competitive forces which provide the incentive to efficiency in the distributive trades.