Seanad debates

Wednesday, 10 November 2004

Competitiveness and Consumer Protection Policy: Statements.

 

11:00 am

Photo of Terry LeydenTerry Leyden (Fianna Fail)

This has not been recognised on the Fine Gael Party's website. One company in north Dublin closed its business as it was highlighted on the website. However, the party does not take responsibility for this.

Take the example of petrol prices. The price of a barrel of crude oil has, due to the war in Iraq and other factors, increased to approximately $52. In June, AA Roadwatch published a comparison of petrol prices in Europe. In Finland, consumers paid 118 cent per litre for unleaded petrol and 96 cent per litre for diesel. In Germany, 120 cent per litre. I recently passed a filling station in the midlands where the price per litre for unleaded petrol was 107 cent and diesel, 103 cent. In other parts of Ireland, the price per litre is as low as 94.9 cent. With differences in prices, consumers are choosing to be more selective when purchasing motor fuel. More competition has resulted since prices are displayed in forecourts, allowing people to shop around for the best possible price. It is hard to compare like with like because of the big players in the petrol market. Concessions are given to their own stations and others to owner stations. However, the Fine Gael Party's rip-off website did not highlight how petrol and diesel prices in the rest of Europe are much higher. In Italy, for example, unleaded petrol costs 115 cent per litre. In Northern Ireland it is somewhat higher. We are relatively competitive in that regard.

The Minister will have a major input into the budget in December. It is vital that there is no increase in value added tax on diesel and petrol because such an increase would raise costs throughout the economy, in particular transport costs. This is an island economy and import and export costs are higher than on mainland Europe. Those factors must be taken into consideration.

The Joint Committee on Enterprise and Small Business is investigating supermarket chains and their costs and competitiveness. We have received interesting submissions, including one from the Director of Consumer Affairs. This is a very complex area but I hope we will soon submit a report to the Minister on the subject. The committee is carrying out extremely good work under its chairman and is meeting at the moment. It is considering all aspects of competition within the supermarket industry, including below cost selling and the size of supermarkets and superstores, all of which have a role to play. It has received good submissions in this regard which it will bring to the Minister's attention.

The Government has contributed significantly to progress in recent years. As a result of the national wage agreements our economy is extremely effective, efficient and wealthy. Employment has never been at a higher level. The Consumers Association of Ireland should be strengthened. The Minister should provide it with an amount in the region of €60,000 to €100,000 per annum. It is understaffed and does not have the necessary resources. I hope the Minister will look at that and expand the area of consumer protection to create a national programme working through an organisation such as the Consumers Association of Ireland or other methods. It is worth considering this.

I commend the Minister and the Government on bringing forward the decentralisation programme. This will spread 10,000 people around the countryside into areas where costs are lower than in the capital city which in turn gives people in rural areas the chance to create more business, competition and opportunities. That policy should be pushed because housing costs, for example, in areas such as Roscommon are much lower than in Dublin. The same is true outside the other major cities such as Galway and there is a major building boom. Already the decentralisation of the Prison Service to Castlerea has boosted that area and the Minister must see the benefits of decentralisation and development in his own constituency. It is difficult to attract some industries to areas outside major centres. Continued incentives in the Border, midlands and western area in particular, where 40% of all inward investment should be located, are essential. I urge the Minister to ensure revitalisation of those areas through inward investment.

I appreciate the scale of the task before the Minister. Many of the new member states of the European Union are looking at the success of "Ireland Incorporated", through Enterprise Ireland, the Industrial Development Authority and the ways in which we have been so progressive. The Minister's networks around the world, working through the IDA, in particular, Enterprise Ireland and the former trade board have been very effective. The trade missions in which Minister of State, Deputy Michael Ahern, and others in the Department are involved will highlight the new opportunities in China, the Middle East and elsewhere. While those areas may not relate directly to the subject of this debate the more success and progress made in the economy, the more competitive costs will be and the better the opportunities.

The Minister put forward an excellent manifesto today for his direction in this portfolio. There is no shortage of reports from his Department and now action is needed. The Minister will no doubt take the necessary action on competitiveness. The December budget will be vital to keeping Government charges down, such as the charges on telephone and electricity costs that have a knock-on effect on overall costs. Members of the public are more aware of costs and are more willing to contact the Department or their public representatives about competitiveness. As the Minister's predecessor said, it is important to shop around for the best supermarket prices. There is more competition in the market place than ever before.

The Joint Committee on Enterprise and Small Business researched insurance costs. We have made progress on this area of great responsibility. The Minister's predecessor set up the Personal Injuries Assessment Board which is progressing. That is a marvellous initiative and this Minister will be responsible for continuing the downward trend in insurance costs which were imposing an impossible burden on small industry and small businesses. There has been, and will continue to be, progress in this area. The more companies the Minister can attract into the economy, the better.

In its submission to the committee last week, Tesco outlined its plan to go into the insurance market with another overseas company. That will provide more competition in that area. Insurance costs are far too high and there is not enough competition but companies such as Tesco bring partners into the economy, although it is self-insured. I welcome the introduction of these partners, which will create more competition and allow people to shop around. I am concerned about fuel costs and hope the budget can at least contain the lowest possible costs for diesel and petrol which have a knock-on effect on the economy.

Finally, I urge our friends in the Opposition to put forward more solutions and do less highlighting of the difficulties. If they have the misfortune——

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