Seanad debates

Wednesday, 2 July 2003

Forfás Consumer Pricing Report 2003: Statements.

 

The third issue that arises from the Forfás report is the comparative cost of rented housing in the eurozone countries. With Ireland at 100, for example, the cost of rented housing in Luxembourg is 79% of the rate here. It is the richest country in the world and must therefore have what we would regard as high property prices, but its rate is 79%. Finland, which is a notoriously expensive country, is 74% of our rental cost. The nearest to us is Luxembourg. In Portugal it is 19% so if one pays €100 a week in Ireland, one would pay €19 a week in Portugal. Italy, which I would have regarded as comparatively expensive, is 43% of our cost. We need to do two things. First, we must get intelligent, objective analysis separate from ideology. I am tired of the Competition Authority saying repeatedly that more competition will solve the problem. If we allow some of the plans for the ESB to be carried through, we will end up with more expensive electricity. If one reads the reports one discovers that it cannot get entrants because it cannot get a price for electricity that would justify the investment. Somehow that is because the ESB is abusing its position. I do not understand that logic but ideology can cloud people's judgment. Second, we need to maximise information to people. My daughter in Italy tells me that she can buy contact lens cleaning fluid for one third of its cost here. She noticed immediately how expensive it was because when she was home I was paying for it and over there she is paying for it.

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