Dáil debates

Thursday, 2 February 2006

Competition (Amendment) Bill 2005 [Seanad]: Second Stage (Resumed).

 

2:00 pm

Photo of Michael AhernMichael Ahern (Cork East, Fianna Fail)

The fact that they are not falling points to a serious flaw in the Deputy's argument. A factor other than input costs is driving the disparity in food prices between Ireland and the United Kingdom.

Deputy Howlin cited evidence given to the Joint Committee on Enterprise, Trade and Employment by representatives of Aldi and Lidl, in which they indicated they could not have opened in Ireland had it not been for the groceries order. Apparently they stated they would have been devoured and killed off by Tesco and Dunnes Stores. How does the Deputy explain the presence of both discounters in the UK market where all the evidence suggests they are enjoying a period of strong growth?

Almost all retailers try to attract customers by claiming to offer prices which are lower than those charged by the competition. That is the nature of business. In general the consumer is free to judge which retailer offers the best value. Aggressive pricing is not uncommon in highly competitive markets. Many low fares airlines have an aggressive pricing policy. We all know people who have travelled to the UK for 1 cent.

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