Micheál Martin (Cork South Central, Fianna Fail)

The recent increase in consumer prices is clearly a matter of concern. While the increase in the annual rate of inflation to 5% as recorded in the Central Statistics Office's most recent bulletin is particularly disappointing, the factors giving rise to this increase are mainly being driven by international developments such as the global increases in the price of oil, food etc.

While our ability to influence the various global factors underlying recent increases in the price of various consumer goods is somewhat limited, it is most important that we exercise vigilance over those areas which we can influence so as to ensure that we do not undermine our competitiveness. Government policy in the area of consumer prices is concentrated on promoting competition and empowering and raising the awareness of consumers to the importance of achieving the best value for money.

In the area of competition, the Competition Authority is responsible for enforcing competition law and advocating and informing the Government and the wider public about competition matters. As regards the grocery sector, the Competition Authority has been requested, following the abolition of the groceries order, to review and monitor developments in the grocery sector in light of the new regulatory environment. The authority recently published two reports on the grocery sector which include an analysis of developments in the sector focusing on pricing trends, market structures and barriers to entry. The authority is committed to keep under review the impact of the regulatory environment on the grocery sector particularly in the context of abuse of dominant positions, including excessive and predatory prices.

Aside from the importance of promoting a competitive grocery sector, consumer power can also exert a significant influence on the price of goods and services. To do this, it is important that consumers have all the necessary information to enable them to make informed decisions about the goods and services they buy.

The Deputy may be aware of the various campaigns undertaken by the National Consumer Agency to raise awareness among consumers. In particular, the agency, through its price check surveys, has sought to raise consumer awareness about the price of grocery products being charged by different retailers and the value that can be achieved by consumers making considered choices as to which retailers they give their custom. In this regard, I note the recent statement from the agency's chief executive that a significant number of consumers have changed their shopping behaviour based on the published results of the agency's surveys. It is clear that when given the information, consumers can make the necessary strategic choices to ensure they get the best value for money.

The recent increases in consumer prices are a matter of serious concern, notwithstanding the fact that the reasons for these increases are due mainly to international rather than domestic factors. It is important, however, that we continue to aggressively tackle the issue of inflation both from a consumer and a competitiveness point of view. In this regard, I am firmly of the opinion that promoting competition and empowering consumers are key policy instruments in this area and I fully support the work of the Competition Authority and the National Consumer Agency in their efforts to ensure that the Irish consumer is not exploited and receives a fair deal.

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