"I would regard myself as a free market economist, " said Jim Power. "Regulation doesn't sit easy with me. But government has to ensure desirable social outcomes. So I'm broadly in favour of the retail planning guidelines."

Debate about the impact of big supermarkets such as Tesco on small Irish retailers was rekindled this month when the British supermarket giant was refused planning permission for a 47,000sq ft superstore in Ballycastle, Northern Ireland.

Tesco, with a leading 26% of the grocery market in the Republic of Ireland and 97 stores with another five slated to open before the end of the year, has been a target of criticism by small shops in town centres.

But it may be the precedent that will be set by the Ikea superstore, even more than large supermarket multiples, that threatens the retail status quo. Then-environment minister Dick Roche changed the retail planning guidelines in 2005 to accommodate the massive development.

"The Ikea decision was a mistake, " said Power. "It does set a precedent, and a worrying one."

Advocates of small retailers have raised the spectre of town centres being reduced to ghost towns.

"Ikea opened up the floodgate, " said Joe Kelly, CEO of IRD Kiltimagh in Mayo and a long campaigner against big box retailers. He said there should be a cap of 7,000 to 8,000sq ft on the size of retailers.

On RTE's Primetime last Tuesday, Tesco director Dermot Breen defended the company's record, noting that the Tesco on the edge of Youghal town centre is popular with consumers and was located in consultation with town planners.

"We will work to open a store that's appropriate to that town, " said Breen. "Our preference is town-centre developments."