A decision is expected early in the new year by the Tánaiste, Ms Harney, on whether to retain the ban on below-cost selling of groceries. A review of the ban by officials in the Department of Enterprise, Trade and Employment is due to be completed in the coming weeks.
They will recommend to Ms Harney that she retain, modify or remove the controversial ban, introduced in the Groceries Order of 1987.
A number of organisations, including the grocery shops' body, RGDATA, the employers' group, IBEC, and the Irish Farmers' Association have lobbied Ms Harney to retain the ban.
The Consumers' Association of Ireland also argues that removing it would not necessarily benefit consumers in the long term.
It is claimed that, in the absence of a ban, supermarkets would sell goods at below cost for a limited period, in order to close down competitors or prevent others from entering the market.
However, removal of the ban was recommended nearly four years ago by the Competition and Mergers Review Group.
It endorsed the findings of an earlier Fair Trade Commission report that below-cost selling was no less desirable than other forms of promotion such as advertising, extended opening hours and free deliveries.
Ms Harney chose not to implement the review group's recommendations on that occasion.
In answer to a written Dáil question earlier this month, however, she expressed concern about high food prices in the Republic.
There was clear economic evidence, she said, that these were "much higher" than prices in other EU countries, notwithstanding the recent decline in inflation and entry to the Irish market of discount retail stores.
Her review of the Groceries Order was "proceeding satisfactorily", she said, and should be concluded shortly. The review has been conducted internally by officials of Ms Harney's Department. Interested parties, it is understood, were not invited to make submissions.
Officials have been examining a number of issues arising from the ban, such as the fact that it prevents supermarkets from selling off, at below cost, goods which are close to their sell-by date. Ms Harney announced her review of the Groceries Order last May.
