Vol. 426 No. 3
12 Mr. J. Higgins asked the Minister for Enterprise and Employment if his attention has been drawn to the fact that the growing presence of large supermarket chains in rural Ireland is responsible for large scale closure of small businesses and consequent loss of jobs; and if he will make a statement on the matter.
I am not aware of any evidence to support the view that the growing presence of large supermarket chains in rural areas are responsible for large scale closure of small businesses and consequent loss of jobs. A recent press article which I have seen in this regard would suggest that any businesses which have closed in such circumstances are those which are operating inefficiently or with high borrowings.
The expansion of large supermarket chains into rural areas of Ireland, while it must be welcomed in the overall interests of the consumer, will inevitably give rise to increased competition for small business already established in those areas. Businesses which are inherently weak or inefficient will suffer most from such competition. However, competition, as long as it remains within the law, must be welcomed. The Competition Act, 1991 prohibits anti-competitive practices and the abuse of a dominant position in the market. The Act applies to all sectors of the economy including the retail trade and leaves open to any person or business who is aggrieved by any anti-competitive activity prohibited under the Act, to have direct recourse to the Courts.
