The decision is also supported by the operator of Supa Express Kaleen, Chris Haridemos, who is challenging the decision by Sustainable Development Minister Simon Corbell to call in the redevelopment of Giralang shops.

On Friday, Mr Corbell said the government would cap the size of future supermarkets in local centres to 1000sq m. He said the policy, supported by Opposition Leader Zed Seselja, would allow convenience retailing in local shopping centres without undermining the territory's retail hierarchy.

Supabarn development manager James Koundouris said the cap would give certainty to Canberra's independent businesses in local centres and create a level playing field for all supermarket operators.

''The maintenance of the retail hierarchy will ensure Canberra residents will continue to enjoy their vast choice of shopping centres, local supermarkets and specialty food retailers,'' Mr Koundouris said.

It would also be a boost for local producers and wholesalers who supplied Canberra's independent food retailers.

Supabarn expects to be issued shortly a lease of land at Kingston where Mr Koundouris said it was proposed to build a supermarket of about 3400sq m.

Mr Haridemos, who opposes the proposed establishment by Woolworths of a supermarket at Giralang, also welcomed the government's decision to cap the size of supermarkets in local centres.

In August last year, Mr Corbell used his call-in powers to allow the owners of the Giralang shops to proceed with their deal with Woolworths to develop the site, after seven years of legal disputes which left Giralang with no supermarket.

In July a group of northern suburbs supermarket operators, including Mr Haridemos, lost a Supreme Court challenge against the redevelopment. Supreme Court Justice John Burns ruled Mr Corbell had acted lawfully when he had used his powers to call in the development.

Mr Haridemos said yesterday the group was appealing to the full bench of the Supreme Court against the July decision.

The group argues the size of the proposed supermarket exceeds that allowed by the Territory Plan.

Yesterday he said the Supa Express supermarkets in Florey, Watson, Richardson and Kaleen supported the move to limit the size of local supermarkets to 1000sq m.

He believed the decision would be overwhelmingly supported by all ACT independent supermarket operators and other small businesses in these centres.

''I am certain local residents especially those without their own transport will also embrace these variations to the Territory Plan as it will ensure access to their local shops and amenities,'' Mr Haridemos said.