The Irish government has rubberstamped temporary planning guidelines banning large retail developments in the Republic, scuppering any lingering hopes harboured by Dunnes and Tesco of building market share through big out of town superstores. The new guidelines ban stores of over 3,000 sq m outside Dublin, but do extend the current floor cap to 3,500 sq m within the Dublin area. Tesco had argued larger stores would bring lower prices and tackle soaring inflation, but surprised competitors by issuing a statement praising the government for "adding clarity to planning laws after two years of uncertainty". The ban comes shortly after a recent report commissioned by Tesco from Bacon & Associates suggesting planning restrictions were restricting competition and harming Irish consumers. Nevertheless Tesco Ireland is investing £100m in the Republic this year to finance six new stores, creating 500 new jobs. A further four outlets are in the planning process. Musgrave Group md Seamus Scally said the move would assist competition in the Republic, which had a "vibrant independent sector precisely because the multiples have not been allowed to monopolise grocery retailing as they have in the UK". He also anticipated that the news would force any prospective entrants that "only know how to trade in superstore formats" to think twice about moving into the Emerald Isle. RGDATA, the organisation representing the independent grocery sector, also welcomed the publication of the guidelines. Director general Ailish Forde said: "The guidelines should ensure that towns and villages in Ireland are not decimated by out of town outlets. "The effect of such uncontrolled retail planning in the UK and other European countries has been catastrophic. The government has ensured that Ireland will take a planned and sustainable approach to the provision of retail shopping facilities." {{NEWS }}

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