Seanad debates

Wednesday, 2 July 2003

Forfás Consumer Pricing Report 2003: Statements.

 

This approach is also open to criticism, however. Last year the Director of Consumer Affairs published a list of prices for the top selling grocery items which were identical among the three major supermarkets referred to by Senator Leyden. That is what happens in competition, because none in our business can afford for our competitors to charge lower prices. My first supermarket in Dublin in the 1960s was located in Finglas where two other supermarkets were also located. In those days the vast majority of shoppers were full-time mothers at home. They would leave their children to school and, before attending 9.30 a.m. mass, check the prices displayed in the shop windows. We watched each others' prices. If, for example, a competitor advertised a pound of tomatoes for one shilling and nine pence, we reduced our price to one shilling and eight pence before mass was over. It was open competition and activity of that kind continues today. When last year the Director of Consumer Affairs expressed concern because the supermarkets were selling at the same price, they did so for that reason. Nobody can afford to have their competitors charging lower prices for identical products, be it butter, milk, bread or whatever. It was very difficult to explain to the director that this kind of outcome would be the result of competition.

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