Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

Question 61: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the findings of the recent Eurostat report, Consumers in Europe, which found that Ireland had the highest prices in Europe, after Denmark, of 29 countries surveyed; his views on the findings of the report; the steps he will take to ensure better value for consumers here; and if he will make a statement on the matter. [4044/08]

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

I am aware of the 2007 edition of the Consumers in Europe Report recently published by Eurostat. The Report contains facts and figures on a number of different services of general interest to consumers in the European Union including information on price levels in the various member states.

The Report does show that household consumption expenditure in Ireland is above the average for the 25 member states of the Union. The December 2007 Consumer Price Index as published by the Central Statistics Office, shows that although the annual rate of inflation fell in December, it is currently running at 4.7%. In terms of comparison with price trends in other member states of the EU, the EU Harmonised Index of Consumer Prices, which is accepted as the most appropriate measure for such comparisons, shows that inflation in Ireland in the 12 months to December is 3.2% which is at the same rate as the harmonised index for the EU as a whole.

An analysis of the Eurostat Report, the CPI and the EU harmonised indices all show that prices for particular goods and services such as housing, transport, food and communications are significantly higher in Ireland than the EU average. Whilst these price levels do reflect in some measure recent rises in interest rates and global trends in food prices, they are matters of concern particularly in terms of our national competitiveness. In this regard, it is important to ensure that our domestic cost base does not undermine competitiveness.

Government policy in the area of prices is concentrated on promoting competition and raising consumer awareness in relation to the need to achieve the best value for money. In the area of competition, the Deputy will be aware of the fact that in conjunction with the abolition of the Groceries Order, which had the effect of keeping the price of groceries higher than they should have been, the Competition Authority undertook to review and monitor the grocery sector in the light of the changed regulatory environment. The Authority expects to finalise its analysis of developments in the grocery sector, which will focus on price trends, market structures and barriers to entry at the end of this month. I would also advise the Deputy that the Authority is committed, under Towards 2016, to keep under review the impact of the regulatory environment in the context of abuse of dominant positions including excessive and predatory pricing and to report to Government in relation to any recommendations arising from its findings.

Aside from the ongoing work of the Competition Authority, the National Consumer Agency, as part of its statutory function to raise consumer awareness, has commenced surveys in relation to the cost of household grocery items in various retail outlets. The results of its initial pilot survey, which examined the price of a selection of common branded goods, were published in July 2007. The Agency has since conducted a wider survey covering a more extensive range of goods, the results of which will be published shortly. Whilst the foregoing focuses on the work of the Authority and the Agency in the grocery sector, expenditure on food represents a significant element of overall consumer household expenditure as evidenced in the findings of the Eurostat Report. Accordingly, I fully support the activities of the Authority and the Agency in seeking to ensure that there is strong competition in the grocery sector and that consumers are fully aware of the price of grocery items so that they can get the best value for their money.

Aside from grocery expenditure, it is important that consumers inform themselves in relation to the price of all the various items which make up their overall household expenditure. In this regard, there is legislation in place which obliges traders to provide consumers with price information in relation to products that they sell. The European Communities (Requirement to Indicate Product Prices) Regulations 2002 require that the selling and unit price for all products covered by the Regulations must be indicated. Consumers have a responsibility to acquaint themselves with the price information provided so as to ensure that they get the best possible value for money.

I note that in presenting the Eurostat report, the European Commissioner for Consumers, Meglena Juneva, expressed the view that consumers cannot properly assess their options or decide how to act without access to information that is as objective as possible. In this regard, I am confident that the work of bodies such as the Competition Authority and the National Consumer Agency will help to ensure that consumers can access the necessary information so that they can negotiate the market and make informed choices in relation to the goods and services that they buy.