Joan Burton (Dublin West, Labour)
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Question 165: To ask the Minister for Enterprise, Trade and Employment his views on whether retailers, particularly those who price goods in both euro and sterling, are not passing on to consumers the benefits of the strong euro exchange rate [i]vis-À-vis[/i] sterling; if he proposes measures to ensure that these savings are passed on to consumers; and if he will make a statement on the matter. [15580/08]

Micheál Martin (Cork South Central, Fianna Fail)
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I am aware of the concerns expressed by some commentators that the benefits of recent movements in exchange rates between the Euro and Sterling may not be passed on to consumers. I understand that the National Consumer Agency has raised these concerns in bilateral discussions with retailers. In the course of those discussions, retailers have advised that the benefits of recent exchange rate movements may not be fully reflected in their prices as in many instances they are tied into long term hedging arrangements, which do not make it possible for them to respond to short-term exchange rate fluctuations. As such, it may take some time for exchange rate movements to be reflected in pricing. This is also likely to be the case for goods that are pre-labelled, often far in advance of hitting the shops.

Notwithstanding such considerations, I understand that the National Consumer Agency remains concerned that in some instances the price charged by retailers reflects a price level that the retailer anticipates the Irish market will bear, and this may or may not take into account movements in exchange rates. For that reason the Agency continues through its advocacy and public information campaigns to raise awareness among consumers in relation to the price they pay for goods and services and particularly in relation to the importance of consumers achieving the best value for money when purchasing such goods and services.

The Deputy will be aware of the Agency's recent survey in the area of food prices. I understand that following the publication of its Grocery Price Comparison Survey, research carried out by the Agency indicated that a significant number of consumers have already changed their shopping behaviour based on the Survey's results. This clearly demonstrates the importance of price surveys and information campaigns of this nature in providing consumers with the necessary information so that they can make informed choices as to where they wish to purchase goods and services. I very much welcome the Agency's activities in this area and I would urge all consumers to consult the Agency's surveys in order that they can achieve the best value for their money. I am confident that the work of the National Consumer Agency, together with the awareness of consumers themselves, will help to ensure that consumers are sufficiently informed to direct their business to those retailers who do offer them a fair deal and the best value for money.