Tesco set off a fresh supermarket price war in the Irish Republic with reductions which it claims average 18% on a range of more than 50 items. Superquinn, the smallest of the major chains, hit back immediately with matching price cuts. "We never allow a situation where our customers have to pay more for their groceries," declared chairman Feargal Quinn, who is also a member of the Irish Senate. But Dunnes Stores, Tesco's major rival in the IR£5bn-plus Irish market, did not react to the cuts. It said it had made "substantial price reductions already this year and will continue to do so as appropriate". According to Tesco, the price cuts cover Irish products as well as international brands such as Kellogg's Fruit and Fibre. It claimed that in its sample survey on a basket of eight products, its price was I£13.69 compared to I£15.62 at Dunnes and I£15.82 in SuperValu, another major player in the Irish market. Irish Consumers' Association chairman Michael Kilcoyne claimed the fact Tesco could afford to announce 18% price cuts "is evidence of the large profits being made by the multiples in the Irish market". But Tesco spokesman Dermot Breen denied large profits were being made and claimed the price reductions had been made possible by cost savings through a streamlining of the Irish operation and improved distribution. He promised more reductions later in the year. RGDATA, the organisation representing the independent sector, advised shoppers "to be careful that these cuts are not being compensated for by increased prices on other goods". Director general Ailish Forde warned that the organisation would be watching the situation closely to ensure the ban on below cost selling was maintained. {{NEWS }}

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