Government urged to reinstate ban on below-cost selling
IFA presidential candidate calls for reintroduction of ban on below-cost selling to support Irish agriculture sector
11 September 2013
IFA presidential candidate, Jer Bergin, says the government should reintroduce its former ban on below-cost selling to counteract the damaging impact of food retailers on farm incomes. The ban, the Groceries Order, was revoked in 2006 and saw below-cost pricing come into play in the retail sector.
Bergin, who believes that agriculture should be at the centre of any government strategy to foster economic growth and employment, has called for a rethink on the retail sector’s proposed code of conduct legislation.
He outlined his views on the matter while presenting his IFA presidential manifesto in Co. Limerick which also contained other governmental proposals to strengthen the agriculture sector. He is not alone in his thinking; Mairead McGuinness, Fine Gael MEP, shares similar views. She recently chaired an EU committee which reviewed whether an EU-wide retail code should be made mandatory.
While the reintroduction on the ban will potentially help support Irish farms, it is also being looked at as an interim measure to address alcohol abuse in Ireland. Labour Party deputy for Dublin North Central, Aodhán Ó Ríordáin, called for a ban on below-cost selling of alcohol in May to help tackle the misuse of alcohol. As the ban on below-cost selling will not need new legislation, he says it would avoid the legal issues that have plagued other measures to introduce price controls on alcohol.
The government is currently working on a proposed code of conduct for all retailers in the Irish market which is included in its programme for government.
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