Paudge Connolly (Cavan-Monaghan, Independent)

The centrepiece of this legislation is the revocation of the groceries order but it contains no meaningful measures to deal with predatory pricing. The removal of the groceries order is a grandiose gesture, calculated to pander to the gallery rather than put more money into the pockets of consumers. The Minister for Enterprise, Trade and Employment described the demise of the groceries order as a "liberating day for competition policy in Ireland". I will believe that when I see people heading off to the sunspots of Europe with the fruits of the lower prices that the multiples have decided to give them, but that day will be a long time coming.

The major multiples, both Irish and multinational, will continue to alternate their loss leaders from week to week, with the aplomb of circus jugglers. It is interesting to see how there are special offers in Tesco in one week and in Dunnes Stores the following week. It is an ongoing saga and people should see it for what it really is.

It is all very well to trumpet the abolition of the groceries order as a lifting of the ban on below-cost selling, if one does not happen to be the owner of a small shop. Often such shops have been in families for generations and, that is what rural Ireland and the towns of Ireland are all about, family-owned businesses passed on from generation to generation. Such small shops grow over the decades into larger shops, perhaps becoming a local supermarket. Families put money into them, building extensions and offering greater levels of service. The personal touch is evident in the services provided to customers, having changed little from across the counter service. By linking up with local chains such as Londis, Centra, Spar, SuperValu or Mace, the shops could compete with multiples and even beat them in some areas. This is welcome.

The "Tescopoly", where every little can hurt, is generally within walking distance in most towns. If Britain is any guide, it will crush many of the small, independent grocers. The massive purchasing power of the multiples in Britain, added to the lack of constraints on below cost selling, sounded the death knell for many small shops. It is a complaint in many British towns that it is not possible to get milk or bread at night because the small shops had been swept away. Once they forced the local shops to close and shoppers were left with no choice but to shop in large out of town centres, the prices increased.

The groceries order was introduced in 1987 by the then Minister, Albert Reynolds, after the H. Williams group collapsed following a lengthy price war. It was seen as a solution at that time but since then more than 2,000 small grocers have gone out of business, with most of the remainder seeking refuge in symbol chains like Spar and Mace. These 2,000 retailers were self-employed, family business people who provided a service but they were wiped out.

The major British multiples entered the Irish market, with Tesco and Marks and Spencer making major inroads within a few years. Much of the distribution to these major multiples is done directly from Britain and the invoice price is set outside the country, presenting problems here. The goods are then imported at a price below the invoice price in Ireland. This must be constantly monitored because such companies can find ways to get around our pricing structure and to make special offers.

The contribution of small retailers cannot be overstated. They are a vital part of society's fabric. The convenience and flexibility of going to a shop near the house to buy bread or milk is invaluable. These shops belong to us and we must make a conscious effort to support such enterprises. It is a major advantage that we do not have to queue at a checkout for more than ten minutes to pay for the groceries and that we can walk in and out without getting a trolley. People should value their time and, while no one should be directed into small shops, we should make a conscious decision to use them. It is not uncommon for parents to run out of milk or bread late at night and the small shop's role in meeting such needs is important. If we do not support them, they will not be there the day we need them and by then it will be too late to complain.

The small shop is a community hub, where people meet after mass, pick up the newspapers and lottery tickets and hear the local news. Deputy Durkan referred to the changed landscape in most towns. In one town in Monaghan where there used to be ten shops 15 years ago, not a single shop is left. That has been replicated in every town. Some town centres are dead, with people only going to multiples in shopping centres, leaving other businesses struggling. My neighbours in Cavan experienced the same difficulty, with the small, family-run business in the town centre suffering. Many town centres are semi-derelict but those derelict buildings were thriving businesses a few years ago.

Previously, in many small housing developments, an integral part of a new community was a small neighbourhood centre which included local shops. Some emerging communities now are bereft of shops, leaving a gaping void that is often not filled for many years. Many people are unable to set up their own businesses and boost the local economy by providing valuable employment. In these areas community is a misnomer because a community looks after its members, with a shop and post office offering self-sufficiency. New housing developments have lost that and there is no way to get to know the neighbours with no local shops or sense of community. These estates are simply collections of commuters where people do not know their neighbours. This starts the breakdown of community spirit because the chatting that once went on is now absent. People have no way of getting to know each other.

The groceries order included a ban on so-called "hello" money, upfront payments from suppliers to ensure their products were carried by supermarkets. There are ways around that and that should be addressed. The order attempted to ensure retailers would not receive any benefit from a supplier for advertising the supplier's product. Suppliers are prohibited from discriminating against any retailer in the terms and conditions under which goods are supplied and suppliers are not permitted to coerce retailers in any way by threatening to withhold supplies. The order importantly required large purchasers to pay their suppliers on time and to adhere to the published credit terms of small businesses and suppliers. Cash flow is a vital aspect in business and unless it is properly managed, a business might not be able to survive, no matter how profitably it trades.

Many book stores and supermarket chains have adopted the practice of selling three items for the price of two. This is in conflict with the below cost prohibitions of the groceries order. It is vital to ensure that another below cost price war does not break out between the major multiples and Irish suppliers. There is a danger that some of the major multiples may take a strategic decision to go below cost to appear competitive for a short period in the knowledge that they will blow away the opposition. They can take a short-term loss for long-term gain. These issues should be examined. This will put at risk the jobs of people working for supermarkets and retailers.

The purpose of this Bill should be to protect the rights of the consumer and ensure where possible that savings that can be made through national distribution are passed on to the customer. Competition is the lifeblood of trade. Permitting small shopkeepers and entrepreneurs to open and carry on business is of paramount importance, as is the availability of choice to the consumer. While it is argued that competition is good for the consumer, unfortunately the small corner shop is virtually extinct and currently accounts for only 10% of the retail sector. The market share of the multiples will grow relentlessly as they continue their below cost onslaught on the market. In the long run, if the scale of their international purchasing clout is allowed to continue unfettered, the rest of the market will not stand a chance, with consumers being nailed to the wall. If Irish consumers wish to consort with the likes of Tesco or Wal-Mart, in its guise of the British ASDA chain, it will cost them much more than the €1,000 they will supposedly save in the next 12 months.

Legislation and regulations will not make a real difference. Ultimately, the onus is on individuals to recognise the bigger picture and make a conscious decision to support small corner shops. Not long ago we sought to try to save rural post offices. If most people were to examine their consciences, they would probably find they have not bought a stamp in a local post office in many years. With post offices and corner shops disappearing before our noses, it is vital we support our local businesses.

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