Willie Penrose (Longford-Westmeath, Labour)
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Question 4: To ask the Minister for Enterprise, Trade and Employment his views on the increase in prices of a broad range of goods, which has resulted in a further jump in the level of inflation to 5% in March 2008; if he is satisfied that appropriate procedures are in place to prevent exploitation of consumers; and if he will make a statement on the matter. [16576/08]

Micheál Martin (Cork South Central, Fianna Fail)
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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.

Willie Penrose (Longford-Westmeath, Labour)
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I thank the Minister for his reply. This is a position that has been a cause of concern not just for consumers but also for the economy at large. The manner in which inflation has risen to 5% is the latest in the growing band of adverse statistics. The consumer price index figures are also of great concern in light of the forthcoming talks because the trade unions will argue for significant increases to protect their members from the impact of inflation.

The Minister will be aware of one big bang idea which the Government proposed, the abolition of the groceries order. Why has this failed to deliver the significant promise attendant upon the abolition of that order? I remember the Leas-Cheann Comhairle and others dealing with this issue. Where has the €500 on average gone? What has happened since the groceries order was scrapped? The Competition Authority reckoned that grocery bills would fall by €500 and this has not happened. Where is the black hole of savings that was promised? That is one question.

There have been significant increases in transport costs and the cost of clothing and footwear. Food prices have risen by 10% and this impacts upon lower-income families and makes it difficult for them to survive.

Where are the savings arising from the increase in the value of the euro against sterling and indeed against the dollar? What black hole has this saving gone into? It certainly has not been passed on to consumers who are being ripped off and fleeced. Where has the money gone? Whose function is it to ensure that consumers are protected and that those savings are reflected in their shopping baskets, particularly in the cost of clothing, pharmaceutical items and newspapers, and trade of that nature? There is a need to become and to remain competitive. However, we must also worry about the tourism industry and its competitiveness. Has the National Consumer Agency enough teeth to try to deal with this issue?

Food imports have become cheaper but where is this reflected in the consumer price index basket of goods? Will the Minister arrange for somebody to monitor what is happening with food prices and the price of international tradeable goods? Why are the savings from currency appreciation in this country versus other currencies not reflected in the price of goods? This question is bugging every Irish consumer today.

Micheál Martin (Cork South Central, Fianna Fail)
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The Deputy asked what has happened since the abolition of the groceries order. We are all aware that the price of oil went through the roof in that period.

Willie Penrose (Longford-Westmeath, Labour)
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Yes, that is an external factor.

Micheál Martin (Cork South Central, Fianna Fail)
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This had a significant impact on global prices. Food prices have increased significantly, particularly in the last six months, and various explanations have been put forward for this. Since the abolition of the groceries order, the monthly consumer price index information from the Central Statistics Office has included a comparison of price movement in respect of goods previously included under the remit of the order versus non-groceries order products. The clear indication is that the international increase in food prices has fed into the situation here. Notwithstanding that, I did not make any specific promises in respect of the abolition of the groceries order. I took a sensible approach in the knowledge that one can never predict unforeseen events and circumstances. I considered foolish the excessive claims that were made on both sides of that debate. The world did not come tumbling down in the ways predicted by some on either side. It may be a salutary lesson to all concerned that debates can be conducted in a more constructive fashion.

Willie Penrose (Longford-Westmeath, Labour)
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The Minister is telling us all to keep our nerve.

Micheál Martin (Cork South Central, Fianna Fail)
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I refer to society in general. We all recall the various representations and so on.

The Deputy has raised the important issue of the impact of exchange rate movements, particularly in the case of sterling and the United States dollar, on the price of goods in this jurisdiction. The National Consumer Agency has raised this point with retailers. Some retailers make the case that they have entered into long-term agreements with suppliers and so on but that we can expect the situation to adjust in the coming weeks or months to reflect exchange rate movements. However, the National Consumer Agency shares the Deputy's concern that, in some instances, the prices charged by retailers reflect the price level that the latter anticipates the Irish market can bear as opposed to taking into account the movement in exchange rates. The agency will continue to exert pressure on retailers to ensure they pass on to consumers the benefits of the euro's appreciation in value. We will continue to undertake price surveys to ensure consumers are aware of the types of savings that can be made.

Willie Penrose (Longford-Westmeath, Labour)
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Will the Minister ensure that all goods are priced in euro rather than having a situation where goods in some retail outlets are priced in sterling or other currency denominations? There must always be a clear indication of the cost in euro. This might seem a strange inquiry but I have a reason for making it. The euro price of every item must be plainly visible to the consumer.

Micheál Martin (Cork South Central, Fianna Fail)
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I will get back to the Deputy on that.