Dáil debates

Thursday, 26 January 2006

3:00 pm

Photo of Paul GogartyPaul Gogarty (Dublin Mid West, Green Party)
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Question 3: To ask the Minister for Arts, Sport and Tourism his views on the way in which tourism is affected by a lack of price display and price increases by certain public houses and accommodation providers during key tourism and sporting events such as the upcoming rugby season, St. Patrick's Day and other crowd-pullers in view of eight Kilkenny city publicans being fined in January 2006 for failing to display drink prices; if discussions have been held with the Department of Enterprise, Trade and Employment in terms of measures to prevent same; and if he will make a statement on the matter. [2521/06]

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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I have already stated very clearly in the House, and particularly in response to Question No. 5 on 22 March 2005, my views on the tourism impact of price increases prior to or during major sporting and other events.

While excessive profiteering by a small segment of the sector around special events may be legal, it is not helpful to the reputation of any tourism destination. It may be capable of being rationalised from a narrow, short-term, economic perspective but it would be unfair to tar the entire sector with the same brush.

The reality is that we live in a free market and the tourism sector, just like other traders, is generally entitled to charge what it wishes. The problem is that Ireland tends to have a weak consumer culture. We tend to be reluctant to pursue complaints about price, service or quality, even when we have legitimate grounds for so doing.

There is no legislation specifically governing rates charged by accommodation providers. However, all hotels must be registered by Fáilte Ireland and they must display a notice stating their maximum prices. If consumers are charged more than the stated maximum, they should take it up with management. If they are then forced to pay more, and have evidence to prove it, they should report the matter to Fáilte Ireland, or its agents, who will take the matter up with the hotel concerned.

There is no legislation in place that prevents publicans from increasing their prices prior to or during an event. However, the Retail Price (Beverages in Licensed Premises) Display Order 1999 obliges all premises where alcohol is sold to display the price of alcohol and soft drinks both inside and outside the premises. This gives consumers the information they need to decide, in advance, whether to accept the prices displayed.

I have not discussed this issue with my colleague, the Minister for Enterprise, Trade and Employment. However, I am aware that the publication of the price surveys undertaken by the Director of Consumer Affairs, allied to increased consumer vigilance, has had some positive effects. The change in practice around the time of the rugby internationals in Lansdowne Road is a case in point. Last year, the Director of Consumer Affairs reported that only two out of 26 premises surveyed had raised their prices on the day of the match. This confirms my view that the best and ultimate regulator is the consumer and suggests that the extent of the practice of increasing drink prices around special events may be exaggerated at times.

I note the comments made by the Director of Consumer Affairs, in the case of the Kilkenny publicans, that "the fines imposed by the Judge totalled €1,300 while the total award in costs amounted to €2,400. It is extraordinary that all eight licensed premises failed to display their drinks price lists at the same time. It makes one wonder whether there was a concerted plan to raise prices during the festival." The director said that her office would continue to enforce the drinks display legislation, as this was a key entitlement of the customer who could then choose where to drink on the basis of value for money. These judgments should send a message to the trade that it must display its prices.

The Deputy might also note that my Department has taken the initiative of contacting the Director of Consumer Affairs, requesting that a special investigation be undertaken around the time of the Ryder Cup to ensure that price lists in restaurants and public houses are displayed prominently, and it has been informed that the appropriate checks will be carried out.

Photo of Paul GogartyPaul Gogarty (Dublin Mid West, Green Party)
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I welcome the Minister's comments on this issue. As he said, it is mind-boggling that eight publicans in Kilkenny city were caught at the one time. One wonders was there some sort of concerted effort in this regard given that Kilkenny is such a beautiful city, such a crowd-puller and a major tourism attraction of which we should be proud. I am not highlighting this to demean Kilkenny, but it might send out a message to other publicans to stop this practice which will damage business in the town in the long term.

In regard to hoteliers, in particular, they are currently required to display their price list on the wall. They display a particularly high maximum price so that whenever a suitable event or demand arises they can go to that peak price, to which most of them would adhere. What are the Minister's views on introducing legislation which would create a clear minimum-maximum differential so that they could not have such a high price away from their off-season price? During the peak summer season, they charge three quarters of the maximum price, but if they think they will get away with it, they charge the full price. Could this matter be investigated so that hoteliers would not be able to charge prices which exceed their minimum off-season price? In that way people would be assured of getting value and quality.

Given that the Minister has not yet discussed the publicans issue in this context with his colleague, the Minister for Enterprise, Trade and Employment, and that such price-taking during events is legal, could a legislative approach be taken to ensure that a company or other entity, be it an accommodation provider or a publican, could not charge more than a fixed price at a certain time? Publicans are less limited than hoteliers in this context. Could a legislative route be followed to ensure such protection and, if so, would the Minister favour that?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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I do not consider that legislation is the answer to this problem. The fact that publicans must display their prices is welcome. The Director of Consumer Affairs was highly critical of eight Kilkenny publicans recently, and rightly so. However, she confirmed that the majority of publicans do not increase their prices in the way in which those Kilkenny publicans did.

The regulations governing hotels and registration with Fáilte Ireland are clear. They must display their maximum prices. It is impossible for us, given that we are without the necessary legislative tool, to insist at a given time of year that they would charge less than the maximum price and that they would not charge the maximum price in the off-season or in respect of special events. All we can do is ask people to complain to us if the maximum price is exceeded. They can do this by contacting Fáilte Ireland. Unfortunately, there are people who will be unscrupulous. In the final analysis the market finds its own level. In time people discover who is and who is not involved in unfair pricing and make decisions accordingly.

I am anxious, particularly during the course of major events, that there would not be price hikes which are unfair to the consumer. In that context, for example, we asked that the Ryder Cup event be closely monitored to ensure that people do not leave this country following their visit here for it with the view that they were charged unfairly, or treated badly or wrongly.