Micheál Martin (Cork South Central, Fianna Fail)

My policy and that of the Government is to provide that both consumer and competition law operate in such a way that the economic well-being of the consumer is maximised. The objective of consumer policy is to provide consumers with the knowledge required to make informed choices, to provide protection from unscrupulous traders and to guarantee that consumer interests are reflected in the decision making and enforcement process. Competition policy assists the consumer by providing a choice of goods and services at a range of prices.

I therefore have no plans to reintroduce price control. I recall that during the 1980s when maximum prices orders under the Prices Acts 1958 to 1972 were last in force, products covered by the orders quickly resulted in the maximum price being the minimum price. To reintroduce maximum price requirements would not only contradict the objectives of consumer and competition policy but would act against the economic interests of consumers by ensuring prices for products could not respond to competitive movements in the market. Such a policy would penalise many while it is unclear whether it would benefit those for whom it was aimed.

Along with our phenomenal economic growth in recent years there has been an accompanying rise in the cost of living. Notwithstanding this, I am pleased to note that the consumer price index fell to 2.5% in December 2005, the latest month for which figures are available. The inflation trend for 2005 was one of relative stability. When energy products are excluded from the overall consumer price index, annual inflation averaged 1.7% for the year. This highlights the impact of mainly imported energy products on our inflation. However, this should not stop us from using the policy tools we have at hand to affect prices. As regards grocery prices, one of the main provisions of the Competition (Amendment) Bill 2005, currently before the Oireachtas, is to revoke the Restrictive Practices (Groceries) Order 1987. I expect that once the groceries order is repealed we will see greater competition in the retail grocery sector and prices will reflect this increased competition in the sector.

The Consumer Strategy Group Report of May 2005 recommended the revocation of the groceries order. The principal recommendation of the group was the establishment of a new National Consumer Agency. This has been accepted by Government and I have established the agency on an interim basis. I hope to publish legislation to establish the new agency on a statutory basis later this year. The interim board of the agency has been involved in raising consumer awareness regarding their rights. The agency will have specific statutory powers and responsibilities in areas such as consumer advocacy, information, education and awareness, enforcement and research. I am certain that equipped with these powers the NCA will be able to make a positive impact and shift the balance more towards consumers as recommended by the Consumer Strategy Group. The Government will continue to use all the policy options available to ensure the interests of the consumer are protected.

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