Pat Breen (Clare, Fine Gael)
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Question 10: To ask the Minister for Enterprise, Trade and Employment the contact he has had with the National Consumer Agency regarding the large price differences for the same goods sold in the UK and here; and if he will make a statement on the matter. [16694/08]

Willie Penrose (Longford-Westmeath, Labour)
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Question 21: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to reports that reductions in the cost of goods imported from outside the euro area, which should have followed on from the increase in the value of the euro, especially against sterling and the dollar, are not being passed on to consumers; the action he will take to ensure that such savings are passed on; if he will provide additional statutory powers for the National Consumer Agency to deal with this problem; and if he will make a statement on the matter. [16545/08]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 10 and 21 together.

I am aware of the concerns expressed by some commentators that the benefits of ongoing movements in exchange rates between the Euro and Sterling and the Euro and the Dollar are not being passed on to consumers.

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 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. In this regard, the Agency has undertaken various initiatives to raise awareness among consumers in relation to the price they pay for goods and services and in particular the importance of consumers achieving the best value for money when purchasing such goods and services.

The Agency recently published the results of a Grocery Price Comparison Survey in the area of food prices. Amongst its conclusions, the Agency was of the view that consumers can force more competition in the grocery sector by informing themselves of the prices of products charged by different retailers and to shop around if they have sufficient choice. I understand that following the publication of its 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 would like to advise the Deputy that the Agency intends to continue to exert pressure on retailers in the coming months to adjust their prices to reflect the benefits accruing from exchange rate movements, particularly in terms of the Euro's appreciation against sterling and the dollar. In this regard, the Agency will continue, through its Price Awareness Surveys, to provide consumers with the necessary information so that they can make informed choices as to how to get the best value for money.

It is clear that the appreciation in the Euro's value against sterling and the dollar has meant that the relative cost of goods sourced in the UK and the US has decreased and whilst some retailers may enter into long term hedging arrangements, consumers are entitled to benefit from these cost reductions. In this regard, I fully support the work of the National Consumer Agency in raising consumers awareness of prices to identify those retailers offering them a fair deal.