Madam, - In Fergal Quinn's article (August 1st), he argues that the North's stores enjoy a hidden subsidy by virtue of the fact that the North is, "in political terms, part of the UK". He goes on to suggest that a goods provider based in Birmingham will charge all Tesco stores throughout the UK (including the North) the same price although distribution costs for getting goods to the North will be higher. This is utter rubbish.
Firstly, political borders do not interfere with and do not affect product pricing. We now operate in an EU-wide market where there are no border restrictions and minimal barriers to trade.
Secondly, the major supermarket chains in the Republic are well capable of using their muscle to buy the same UK goods and get them to Dublin or Cork for the same cost as they are delivered to Fermanagh or Derry. It is not the manufacturers which dictate this, as Fergal Quinn would like us to believe; it is largely the purchasing power of the supermarket kings.
Thirdly, the key issue is the selling price which the Irish supermarket chains then charge. The surveys conducted by the Irish Consumers' Association have clearly demonstrated that Irish supermarket chains apply high mark-ups and enjoy greater profit margins than equivalent stores in the UK and the North.
Last Saturday, we bought strawberries in Superquinn and were horrified on returning home to see that they had originated in the USA. Why not Wexford? Are the distribution costs arising from transporting strawberries from Wexford to Dublin higher than those of flying strawberries from the USA to Dublin? This is a superb example of how chains such as Superquinn can purchase goods from almost anywhere in the world using their mighty purchasing power, screw the suppliers and still mark up a healthy profit.
The only way to deal with this situation is for Irish consumers to shop around. Business leaders and those with vested interests in the supermarket business will always try to persuade us otherwise. - Yours, etc.,
RICHARD COFFEY,
Terenure,
Dublin 6