Written answers

Tuesday, 4 October 2005

Department of Enterprise, Trade and Employment

Price Inflation

9:00 pm

Photo of Charlie O'ConnorCharlie O'Connor (Dublin South West, Fianna Fail)
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Question 348: To ask the Minister for Enterprise, Trade and Employment if he will report on his efforts to respond to criticism of rising prices; and if he will make a statement on the matter. [26712/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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While recent returns show that inflation in Ireland continues to moderate and is in line with the average rate of inflation throughout the European Union, it is undoubtedly the case that many consumers do not feel they are getting a fair deal.

The Deputy will be aware that in March 2004, my Department appointed the consumer strategy group to advise and make recommendations for the development of a national consumer policy strategy. The group's final report, Make Consumers Count, was published in May of this year. The report emphasises the importance of empowering consumers so they can make informed choices and reap the benefits of freely functioning competitive markets. The consumer strategy group has suggested a way forward in terms of consumer protection policy, particularly in terms of how the balance of power can be shifted more toward the consumer and has made over 30 separate recommendations as to how this can be achieved.

The group's core recommendation that a new statutory body, the national consumer agency, be established to advocate the consumer's case has already been accepted by the Government. My Department has begun work to ensure that the new agency be formally established as soon as possible.

In the interim, the Office of the Director of Consumer Affairs continues to play an important role in the area of consumer protection particularly in terms of enforcing the wide range of existing consumer laws and regulations. In this regard, the Deputy will be aware that my Department recently increased significantly the sanctions for breaches of those laws. To build upon the work of the ODCA and to ensure that the momentum of the report of the consumer strategy group is maintained and that the consumer's voice is heard, I recently appointed a board to the new agency to act in an interim capacity until the agency is formally established.

The Deputy will be aware that since its appointment, the board had been very active on issues such as the debate on the future of the groceries order, the cost of goods and services etc. It is vital that these and other consumer debates are not dominated by vested interests, as has happened heretofore, and that the consumer's case is forcefully advocated. I am confident that the interim board will continue to be a forceful advocate for the consumer until the full national consumer agency is established. In this regard, I am aware that the board intends to increase significantly its activities in terms of consumer awareness, advocacy and information campaigns.

I am satisfied that the report of the consumer strategy group does offer the way forward. The report re-emphasises the importance of promoting competition and empowering consumers. I am confident that the application of these policies in conjunction with the work of agencies such as the Competition Authority, the Office of the Director of Consumer Affairs and the interim board of the national consumer agency will help to ensure that consumers get a fair deal.

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