Bernard Durkan (Kildare North, Fine Gael)
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Question 104: To ask the Minister for Enterprise, Trade and Employment the extent to which food prices at retail outlets have increased or decreased since the abolition of the Minimum Prices Order; the extent to which prices have fluctuated in the two years previous to the abolition of the order; and if he will make a statement on the matter. [7352/08]

Micheál Martin (Cork South Central, Fianna Fail)
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Since the Groceries Order was abolished, the Consumer Price Index shows that the prices of products previously covered by the Groceries Order rose by 5.3% and prices of products not covered by the Groceries Order rose by 4.5% in the period from March 2006 to January 2008. During the same period, prices of products covered by the Groceries Order and products not previously covered by the Groceries Order rose by 4.9%.

Since December 2006, CSO prices statistics use that month as a base. The previous base was December 2001. Available CPI figures, using December 2006 as a base, indicate that items covered by the Groceries Order increased between January 2005 and the abolition of the Order in March 2006 by 0.3%, while non-Groceries Order items decreased by 0.1% during the same period. Combined, prices of both Groceries Order products and products not covered by the Order increased by 0.2% during the period January 2005 to March 2006.

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 bio fuel 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 focussed 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.

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.