Joe Carey (Clare, Fine Gael)

On the radio news last Monday I listened with interest to the Minister for Justice, Equality and Law Reform speaking from his constituency of Louth about the dramatic increase in cross-Border shopping. It reminded me of King Canute trying to keep the waves back. Does the Minister for Justice, Equality and Law Reform and his colleagues really believe that people are travelling these distances without having established the benefits? The addition of 0.5% to our VAT rate and the subsequent reduction to 15% of the VAT rate in the UK has introduced a significant 6.5% difference in the price of products. That is before our rip-off economy is even factored in.

Anybody who shops in one of the large department stores in Ireland where dual pricing is used can see that goods are significantly more expensive here than elsewhere in the eurozone or in the UK, even when the euro is converted to sterling. From a consumer's point of view, the price of oil and its associated products offers a good example of how they are being ripped off. From January to early August the price of crude oil increased from $100 a barrel to a peak of $147 a barrel. According to the AA, the average price of a litre of petrol increased from €1.18 to €1.33 and the price of a litre of diesel increased from €1.19 to €1.43 over the same period. Throughout that time one would hear in the early morning news how the price of the barrel of oil had increased. Day by day prices at the petrol pumps rocketed.

Since August, the price of a barrel of oil has plummeted to approximately $40. However, the rate of decrease passed on to the consumer has been abysmal. Getting the industry to react has been like pulling teeth. We have heard every excuse as to why prices cannot come down. Undoubtedly, there has been vicious profiteering during this debacle and the Irish consumer is the victim. There has been no reaction from Government

It is my understanding that, to a large extent, the function of regulators has been to ensure the provision of a better or even guaranteed level of service to the Irish public. Energy, taxi, aviation and financial regulators are often on our airwaves reminding us in advertisements of the role they are fulfilling on our behalf. The recent banking crisis has shown that these organs of the State must be studied. Basic questions must be asked of these bodies to determine how effective they are. These questions include asking how much of their budgets is spent on consultancy fees, advertising and promotion. Answers to these questions would give a good indication as to the effectiveness of these bodies. This process is long overdue and the practice of establishing and staffing these bodies with people from industry should be closely examined. At a minimum, a statutory requirement should be imposed on regulators to accept submissions from members of the public before approving price increases and to explain subsequently the basis of such decisions.

The basic point being made in the motion is that the Government is not a detached body in economic matters. It must spend less time seeking to pass on blame and face up to its responsibilities, measure its response towards the consumer and, above all, refrain from referring to or calling for patriotic action. It would do well to remember the refrain that action speaks louder than words.

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