Miley Cyrus, who has designed a line for Asda, the Wal-Mart owned retail group interested in opening in Ireland

The cap on the size of retail premises looks like it will finally be scrapped after the government committed to undertaking a new study on the economic impact of removing the cap as part of the EU/IMF bailout package. The review will be done "with a view to enhancing competition and lowering prices to consumers".

Implementation of the "policy implications" following the review will be discussed with the European Commisson, which is seen by those in the industry as shorthand that the result is a formality. "It came from the Competition Authority report and will gradually get implemented because it's what they want," said a senior Department of Finance source.

Floorspace caps were introduced to stop hypermarkets entering the Irish market, but were later amended to allow Ikea to open here. The grocery market restrictions remained in place, stopping the likes of Asda, Sainsbury's and Costco from opening here despite the fact that they had signalled their interest in doing so. B&Q has also been prevented from opening larger DIY stores in retail parks around the country.

In its September 2008 review of the grocery sector, the Competition Authority called for a removal of the cap on grocery retail space, an end to the discrimination against discount retailers which limits the size of stores it can open, more flexibility by local authorities when estimating the new floorspace requirements over the coming six years, and an assessment of retail competition in an area when development plans are being drawn up. "The retail planning system limits competition among retailers and as a result consumers are not getting the best possible choice or value for money," Competition Authority chairman Bill Prasifka said at the time.

The authority also said it wanted consumers' views to be taken into account when retail policy was being drawn up and for research to be done into ways of preventing retailers from appealing plans by rivals to open in a particular area.