Senior executives from Asda, Costco and Sainsbury's set to be called before Oireachtas to outline plans for Irish retail market
The Competition Authority will this week recommend that the government ease the cap on supermarket and shop sizes in order to increase competition in the sector.
The shop size cap was introduced to stop hypermarkets entering the Irish grocery market but the government later amended them to allow furniture giant Ikea to open here. However, the conditions of that decision meant the only place where Ikea could open in the Republic was in Ballymun, in Dublin.
Now, with grocery prices here running well ahead of Britain, the Competition Authority will recommend in a report published on Tuesday that easing the size restrictions will help retailers such as Asda, Sainsbury's and Costco to enter Ireland.
Meanwhile, senior executives from Sainsbury's, Asda, Waitrose and other British multiples look set to be asked to appear before the Oireachtas later this year. The joint Oireachtas committee on enterprise, trade and employment is considering a detailed review of the Irish grocery market after Mayo Fianna Fáil TD Dara Calleary raised the idea at a committee meeting last week. The proposal will be considered at a meeting before the end of September following cross-party discussions.
The review would also examine means of protecting small retailers from being driven out of business by the larger conglomerates and ensuring more Irish-produced goods make it onto the shelves of international retailers trading here.
The proposal was made after revelations that Superquinn has been approached by an international retailer, believed to be Sainsbury's, which is interested in buying it.
"My understanding is that some of these retailers are very keen on entering the Irish market but various barriers have been put in their way," said Calleary. "I have suggested that the enterprise committee invites representatives from these companies to talk to us about the difficulties they are facing establishing shops in Ireland. I'm going to put a detailed proposal together and the committee is due to consider this in the coming weeks and hopefully, if they agree to my request, we'll be able to get to the bottom of a range of issues affecting this sector.
"The wider review of the grocery industry would also look into the difficulties faced by Irish corner shops. These play a vital role in many communities around the country and I would not like to see them face further pressure from the multinational companies. The review would look at what kind of future these shops face and how we can protect them while promoting competition. It's about getting the balance right."
Sunday Tribune
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