Dáil debates

Tuesday, 24 February 2009

3:00 pm

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Question 53: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will introduce price controls; the products and services which she is considering controlling; the criteria she will use in making a decision on whether to impose such controls; and if she will make a statement on the matter. [7345/09]

Photo of Noel CoonanNoel Coonan (Tipperary North, Fine Gael)
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Question 68: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether she has damaged the retail sector and depressed consumer demand through her recent comments on price controls and her endorsement of the National Consumer Agency's recent price survey; and if she will make a statement on the matter. [7362/09]

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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Question 95: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the re-introduction of price controls; the way such a system would work; and if she will make a statement on the matter. [7268/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 53, 68 and 95 together.

I am aware of several recent media reports which have speculated on the introduction of price controls as a way of tackling prices. I have not made any commitment to the introduction of price controls. I have said that I will consider introducing legislation if I find certain retailers, or other elements of the supply chain, whose actions are resulting in the consumer not receiving fair value. I am prepared to consider all legislative options to address problems that persist or act as a barrier to fair competition or to the achievement of value for the consumer.

Much media comment in this area has focused on the possible introduction of price control measures as a means of tackling the current differentials in prices between this jurisdiction, Northern Ireland and the UK. Undoubtedly, the level of the differential in prices is giving rise to considerable concern, not only for consumers but also for the economy, given the impact they are having on employment, trade and revenue to the Exchequer.

Notwithstanding the Government's accepted preference of tackling price inflation through the promotion of competition and consumer choice, North-South price differentials have been a matter of concern for some time. Given this, I have been actively engaged with various elements of the retail sector over the past several months to ensure Irish consumers benefit by way of lower prices from the appreciation in the value of the euro, particularly against sterling. Given that the euro has appreciated by almost 30% in value over sterling in the past 18 months, it is unacceptable this has not translated into lower prices for consumers in all cases.

It is incumbent on all links in the retail chain to ensure the greatest degree of transparency possible as to the reasons for the current North-South price differentials. I will continue to pursue this issue with retailers, distributors, suppliers and manufacturers to ensure Irish consumers receive a fair deal and value for money when doing their day-to-day shopping.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I was not referring to media comments but to the words of the Tánaiste and Minister for Enterprise, Trade and Employment in her interview on "The Week in Politics" with Deputy Joe McHugh in which she specifically threatened to introduce price controls. Those were her words and I do not care what was in the newspapers. These were threats made by her and she should not claim it was an impostor on the programme.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Does the Deputy have a question?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Government sets ESB and gas prices, taxi, bus and train fares, health charges and work permit prices. Nothing has increased more this year than government charges. Why should we trust the Government to fix prices when it is responsible for most of the inflation rises?

Will the Tánaiste and Minister for Enterprise, Trade and Employment withdraw the slur she made against Irish retailers? In the main, they are not responsible for high prices; it is the Government that is responsible. Government charges are the primary reason for high retail prices. Will she withdraw the slur against Irish retailers and her encouragement to consumers to shop in other countries?

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I refute the Deputy's remarks. As always, Deputy Varadkar moves off on a whim and goes for the facts afterwards. I do it the other way around. We have established the facts, that is, the cost of doing business. There continues to be a differential between North and South, taking into consideration all the competitive issues the Deputy addressed.

I have met with retailers ad infinitum. Many of them are doing their utmost to reduce prices but cannot do so when they cannot access a sterling price list. Those are issues in the supply chain and route to market which are being investigated. Under section 32 of the Competition Act 2002, the Competition Authority carries out studies on retail distribution and imports. I do not have clarity on this issue and, therefore, I have asked the Competition Authority to investigate the matter and report to me by 30 April in order that I can address the issue.