Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

It depends on the good or service. What can the Government do about it? First, we tax profits. I have nothing against companies making profits but they should not be making margins that are out of line with those in other jurisdictions. I have said that previously. We tax the profits of companies and will continue to do so. We have a powerful competition and consumer protection regulator whose powers were beefed up last year and additional resources provided. That body has the authority to examine prices and carry out investigations where there is price fixing, price signalling or cartel-like behaviour. We are engaging with the CCPC on all of that.

In reply to the Deputy's contention, I did not rule out price controls. In response to a question from Deputy McDonald, I outlined what the preliminary advice from the CCPC was on that. That advice indicates the unintended consequences of prices that are not controlled going up even more and a very serious impact on small retailers, particularly in rural areas, and small shops that require higher margins to survive. That is why it was abandoned in Spain.

There is a lack of evidence from France and Greece that it has actually been beneficial for consumers. There is the risk of shortages and the risk of products being less available. All that is set out in the advice, which the Deputy is welcome to read. I know the Deputy is ideologically committed to the idea that governments should control prices but he has to acknowledge that there can be consequences. We know from socialist governments in eastern Europe and the Soviet Union that the consequences of price controls there were shortages, rationing and the black market. Those are not good things.

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