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Super Price War

11.09.2005

Turning to home for the odd-post or two. The examiner this morning carries Micheal Martin's expectations that there could be a supermarket price war in full swing by Christmas. Doubtless the lenders and other purveyors of cheap credit will be delighted to hear of more stimulus to a flailing consumer.



"There is substantial evidence that consumers are paying higher prices because of the order," he said.


Im pretty sure at this stage Martin knows what he is talking about right, repeal the legislation and whammo you have a price war that cheapens the sweets up goodo in time for Christmas. Alas, there is one man who knows slightly more on this front than Martin and he is not altogether convinced.

Ben Dunne, in an interview Sunday with the Post, put the blame for high grocery costs on price-fixing among supermarkets and distributors. He feels that the repeal of the Order will do little in the long term to change the practice of cartel price arranging.

"The laughable thing is that the biggest problem related to the high price of food in this country is not the ban on below-cost selling - it's price-fixing,"Dunne said.
"There should be an investigation into it and a maximum retail price that people can charge."

Dunne dismissed claims about the high costs of doing business in Ireland, which have often been cited by retailers as justification for the price differences between Ireland and other European countries.


The man has got a great deal of experience in the business and when he is willing to flag up something as serious as price fixing in the market place one would expect some reaction. HOwever I guess starting one major series of State Enquiries is enough for the powers that be so we will stick to the line that it is all about the Order and removing that makes everything better.

Well, if Dunne is to be believed and;
"There are a lot of unwritten agreements whereby people won't sell products below a certain price. It is going on all the time."
Then that is certainly another one in the bag for this corrupt little state of ours.

RR

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  1. Anonymous Wulfbeorn | 5:57 p.m. |  

    I wrote about this earlier on: while removing the Order may not be a magic pill, its effects were certainly harmful.

  2. Blogger Cian | 6:05 p.m. |  

    Agreed, i am just a bit sick of the whole, legislative magic trick approach to government. in the minds of our administration there is a law for every problem.
    Which is complete nonsense and a failure to the electorate. Presentation of it as the be all and end all is disingenuous.
    RR

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