Beleaguered Tanaiste Refuses Legal Move On Cross Border Food

There will be no legislative move to force supermarket food retailers to lower prices in the Irish Republic.

Tanaiste and Minster for Trade and Enterprise Mary Coughlan is adamant that there will be no legal change to force retailers to cut their prices.

A spokeswoman said there is an "ongoing process of engagement" with supermarket giants but said the once contentious Groceries Order - which (some say illegally) regulated cross border trade - will not be reintroduced.

However, there appears to be no justification for the massive price discrepancies between Northern Ireland and the Republic when it comes to consumer goods - and that view is becoming increasingly vocal.

The Vice Chairman of the Consumers Association, Michael Kilcoyne has commented in the wake of a price survey of Tesco and Dunnes published in this morning's Irish Independent which found differences of almost 250% between identical goods in their stores in Enniskillen and Cavan.

Mr Kilcoyne said it is hardly surprising that shoppers living near the border, such as in South Donegal, are opting to travel from their local area to do their shopping in the North.

He said that the government needs to start doing more to tackle the problem as he says supermarket giants are indeed charging customers in the South twice what they charge Northern shoppers for the same goods.

He said the only way the prices are going to change is if the government changes the Companies Act.

"If we could see the massive profits the supermarkets are making in the Republic, that would show how hugely profitable they are at the expense of the consumer," he said.

He pointed out that Tesco and Dunnes both incorporate their profit figures into their global figures with no indication of the level of profits in the Irish market. "It's time to get tough on them," he said.

The new price survey of Tesco and Dunnes by the Irish Independent has found huge differences between identical goods.

But the prices charged by the two supermarket giants in the South also almost mirror each other, giving customers little reason to 'shop around' as advocated by the National Consumer Agency.

The findings show that despite being less than 32 miles apart, Tesco in Enniskillen charges €1.98 for a jar of cherry peppers compared to €4.87 in Cavan.

This represents a difference of almost 250%. In Dunnes in Cavan, own-brand chicken costs €14.50 per kilo compared to just €9.81 per kilo in the North.

Consumer bodies have hit out at the prices, pointing out that while the euro has gained in value by over 20% in the last 18 months, the savings have not been passed on to shoppers.

(BMcC/KMcA)