Kathleen Lynch (Cork North Central, Labour)
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Question 95: To ask the Minister for Enterprise, Trade and Employment his views on reports of recent substantial increases in prices of a range of food prices and forecasts that food prices will rise further by the end of 2007; if he is satisfied that sufficient protection is available to protect consumers against unwarranted price increases; and if he will make a statement on the matter. [31139/07]

Micheál Martin (Cork South Central, Fianna Fail)
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The price of a range of foods has increased in the last number of months. In this regard, the October 2007 Consumer Price Index as published by the Central Statistics Office shows that the price of food and non alcoholic beverages increased by 1.4% in the month and this was one of the main factors contributing to the increase in the annual rate of inflation to 4.8%.

As I advised the House in my reply of 24th October 2007 to a previous question on the same matter (PQ 25386/07 refers), rising food prices are being experienced right across the world due mainly to a number of emerging and growing trends. For example surging demand for meat and dairy produce in significant developing markets such as India and China, a rising global population, more frequent floods and droughts caused by climate change, the increasing loss of potential food-producing land to biofuel production have all impacted on the global rising cost of food. Unfortunately, these trends will most likely continue and will have an impact on the price of food into the future. Indeed as I previously advised the House, the Organisation for Economic Co-operation and Development and the United Nations' Food and Agriculture Organisation in a recent report expressed the view that because of factors such as those already referred to, the price of agricultural commodities will remain high over the next decade.

In terms of the price of food in Ireland, it is important that consumers keep themselves informed in relation to the level of prices in order that they can make an informed choice before deciding whether to buy from a particular retailer or whether to go elsewhere. To this end there is legislation in place which ensures that consumers are provided with clear price information prior to making a decision to purchase goods. The main piece of legislation in this area is the European Communities (Requirement to Indicate Product Prices) Regulations 2002, which requires that the selling price and the unit price for all products covered by the Regulations must be indicated.

As previously advised, the Competition Authority has been requested to review and monitor developments in the grocery sector and to assess, over time, the impact of the new regulatory environment. I understand that the Authority will present its first report, which will include an analysis of developments in the sector focusing on pricing trends, market structures and barriers to entry, shortly.

In addition to the work being undertaken by the Competition Authority, the National Consumer Agency also conducted a survey in relation to the price of common branded grocery products, the results of which it published in July of this year. The Agency will undertake a more extensive survey in the coming weeks, which will include branded and own branded groceries, fresh meat and fresh fruit and vegetables. I understand that the Agency will publish the results of this further survey in January 2008. I very much welcome this price awareness initiative by the National Consumer Agency which undoubtedly will greatly assist consumers in making price comparisons on a basket of common food products thereby helping them to achieve the best value for money.

I am satisfied that the measures put in place to allow consumers to make informed choices about the grocery items that they buy together with the ongoing work of the Competition Authority and the National Consumer Agency will help to ensure that consumers do not suffer from unwarranted price increases when doing their grocery shopping.