Ciarán Lynch (Cork South Central, Labour)
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Question 17: 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 2008; 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. [4063/08]

Micheál Martin (Cork South Central, Fianna Fail)
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I am fully aware that the price of a range of foods has increased in the last number of months. Whilst the December 2007 Consumer Price Index as published by the Central Statistics Office shows that although the annual rate of inflation fell to 4.7% in December down from 5.0% in November, the price of food and non alcoholic beverages increased by 6.3% in the year.

Rising food prices are being experienced across the world due mainly to a number of factors including climatic, economic and demand reasons. A recent report by the Organisation for Economic Cooperation and Development and the United Nations' Food and Agriculture Organisation has identified that the rapid expansion of the global biofuel industry is causing fundamental changes to agricultural markets and is likely to keep the prices of agricultural commodities high over the next decade. A rise in input and transportation costs consequent on increased fuel and energy prices has also contributed to the increase in biofuel production. Adverse weather conditions which have seen a two-year drought over large parts of Australia and an unusually wet summer over much of Western Europe in 2007 together with a drought in South-Eastern Europe has had consequent effects on food yields. This has coincided with an increased demand for meat and dairy products in significant developing markets such as China and India.

Notwithstanding the global rise in food prices, national policy in so far as the price of food to Irish consumers is concerned, is focused on promoting a competitive grocery market and raising consumer awareness in relation to the need to get the best value for money when doing their grocery shopping.

It is important that consumers are aware of the price of goods and services in order that they can make an informed choice before deciding whether to buy those goods and services from a particular trader or whether to go elsewhere. To this end we have legislation in place, which ensures that consumers are provided with clear price information prior to making a decision to purchase goods. There are four Price Orders currently being enforced by the National Consumer Agency. In the alcohol and soft drink area there is the Retail Price (Beverages in Licensed Premises) Display Order. This Order obliges all premises where alcohol is sold to display the price of alcohol and soft drinks both inside and outside the premises. The Charges (Hairdressing) Display Order 1976 (S.I. 156 of 1976) requires hairdressers to prominently display the charges for every service offered so that consumers will be informed before entering the premises. The Retail Price (Diesel and Petrol) Display Order, 1997 requires petrol stations to display their prices in a clear and prominent manner so that consumers can make an informed choice. The European Communities (Requirement to Indicate Product Prices) Regulations 2002, require that the selling price and the unit price for all products covered by the Regulations must be indicated. Any infringements of these Regulations should be reported to the NCA.

Whilst clearly the recent increases in the price of a variety of staple foods is a matter of some concern, I am confident that the current policy of promoting vigorous competition and raising consumer awareness together with the work of bodies such as 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.