Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 72: To ask the Minister for Enterprise, Trade and Employment his views on the recent consumer prices average analysis for Dublin and outside Dublin produced by the CSO which showed a wide variation in prices being charged for goods and services throughout the country and which disclosed that a number of items in Dublin were consistently more expensive than in other parts of the country; and if he will make a statement on the matter. [6161/05]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The analysis to which the Deputy refers resulted from an initiative whereby data for average prices in Dublin and outside Dublin in May 2004 was published by the Central Statistics Office last July — drawn from the national average prices published for the consumer price index. This initiative, which resulted from close co-operation between my Department, the CSO, the Office of the Director of Consumer Affairs, the Consumers' Association of Ireland and Forfás, continued with the publication of figures for November being brought forward to December. I issued a statement on the 16 December welcoming the analysis and outlining my reaction to it.

The aim of this initiative is to provide data to consumers on prices, given that differences in the prices of goods and services are an ongoing aspect of an open economy. I have noted that 48 of the 73 prices involved in the analysis were higher in Dublin than outside of Dublin with 24 lower and one showing no difference. Prices in Dublin for meat, fish and most fruit and vegetables were generally higher but prices of most of the other food products were lower except standard and large eggs, spaghetti and orange juice.

It should be noted that the prices of goods and services are determined by factors such as outlet location and size, brand and quality. The location of a business will have implications for costing of any goods and services provided in terms of overheads such as transport, rent and insurance.

The data also provides consumers with an indication of the average prices for 73 goods and services. Consumers in Dublin, for example, could note an average price in November for various cuts of meat and compare this with the prices they were paying. They could also note that the average price for a litre of milk in November was 80 cent, a white sliced loaf was €1.06, a pint of stout was €3.73 and a ladies' wash, cut and blow dry €33.14. Consumers outside Dublin were paying 88 cent, €1.16, €3.42 and €29.86 for these goods and services. With this information in hand consumers were in a position to shop around for cheaper alternatives or to ask suppliers providing these goods and services at higher prices why they were charging above the average.

My Department proposes to continue building on this initiative in order to get more user-friendly data to consumers on prices and will continue to work with the CSO, ODCA, CAI and Forfás in this regard. In addition, I will continue to support the work of the Competition Authority on an ongoing basis and the work of the Director of Consumer Affairs who has been proactively undertaking price surveys and bringing their results to the attention of the public.

While we are working on getting information to consumers, we also need to support consumers so that they can be confident in raising queries with suppliers. Arising from the concern about the imbalance between consumers and more vocal and more powerful lobbies the consumer strategy group was set up last March and I await formal publication of its report. I will be carefully considering the group's findings and recommendations and I look forward to building on its work and to developing a modern and responsive consumer policy for the years ahead.