Competition is the life-blood of a vibrant economy, and the Government is committed to removing unwarranted constraints on competition in all sectors of the economy, including the retail sector.
The retail grocery sector has seen significant changes in recent years, particularly since the entry of discounters Aldi and Lidl. There have been other developments too, such as the opening of 24-hour outlets by food retailers and the stocking of more non-food items to facilitate the way people live today.
I am pleased to see that many Irish firms have faced up to this increasing competition by investing further in their operations and opening more new stores. Such investment is important for improving the services and choices available to Irish consumers. The mix of retail outlets has created a situation where local and international players now coexist in a dynamic marketplace.
However, price competition in the retail grocery sector has been constrained for many years by the Restrictive Practices (Groceries) Order 1987, which prohibits the sale of grocery goods at below net invoice price. That prohibition has had the effect of keeping prices artificially high.
However, one of the main provisions of the Competition (Amendment) Bill 2005, which I recently brought before the Oireachtas, is to revoke the groceries order. I expect that once the order has been repealed, we will see greater competition in the retail grocery sector and that prices will reflect that increased competition in due course.