Written answers

Thursday, 22 May 2008

Department of Enterprise, Trade and Employment

Consumer Protection

4:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 131: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the extent to which diesel prices at the pumps are vastly higher than petrol prices; if an investigation has been undertaken to identify the cause of such disparities, having particular regard to the fact that people are encouraged to switch to diesel as a more eco-friendly fuel but are being penalised by the oil companies; if steps are being taken or are expected to be taken to bring diesel prices at least back into line with petrol prices or lower as was previously the case; if she will use her influence at EU level to ensure that consumers here are not in any way victimised by such price structures; and if she will make a statement on the matter. [20530/08]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The Deputy will be aware that since the beginning of the year there have been significant increases in both the wholesale and retail price of petrol and diesel products, caused by a combination of strong demand, tight capacities and some market speculation. Ireland has no control over world oil prices. Government policy in relation to prices, including the price of commodities such as petrol and diesel, is concentrated on the promotion of competition, consumer choice and awareness. There is no price control on these products and in common with most other goods and services price differences are an ongoing feature of the market economy.

It is a matter for retailers to explain price differences where they occur and my Department encourages consumers to raise price concerns directly with retailers. 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 Order enables consumers to readily compare prices and purchase their fuel on the basis of an informed choice. The National Consumer Agency (NCA) enforces this Order. Any infringements should be reported to the NCA.

It is important, therefore, particularly in times of rising oil prices, that consumers inform themselves of the prices being charged by different traders for fuel products such as diesel and petrol so that they can achieve the best value for their money. I am satisfied that the statutory Regulations in this area ensure that consumers are given the necessary price information to allow them to make informed choices when purchasing fuel.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 132: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the extent to which multi-national chain stores operating here are charging up to 50% higher prices for food products here than in the UK; if it is intended to take action to identify the cause of such practices; the extent to which it is intended to take action to address this issue; and if she will make a statement on the matter. [20532/08]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I am aware of concerns expressed that some multi-national retailers are charging higher prices for food products in Ireland than in the UK. Whilst undoubtedly rising food prices are being experienced across the world, the findings of recent surveys showing that the cost of certain food items to Irish consumers is significantly greater than the cost of such items to UK consumers are certainly matters of concern. A major factor in this debate relates to concerns that some retailers may not be passing on the benefits of the appreciation of the Euro's value vis a vis sterling to Irish consumers.

The National Consumer Agency has raised this issue 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 for a variety of reasons including hedging arrangements and invoicing by UK suppliers in euro. Nevertheless, the Agency is firmly of the view that the benefits of the Euro's appreciation should be passed on to consumers. The Agency is also of the view that, in some instances, the price charged by retailers reflects a price level that the retailer anticipates the Irish market will bear irrespective of exchange rate movements. I fully share the Agency's view that consumers are entitled to expect a fair deal from business and that business has an obligation to treat their customers fairly which includes passing on the benefits of exchange rate movements and not seeking to profiteer from such movements.

I met yesterday with the Chief Executive of the National Consumer Agency. The Chief Executive advised me that the Agency has initiated a series of actions to pursue this matter with the retail sector. It is vitally important that disproportionate price differentials on basic items such as food should be tackled and where retailers fail to provide credible reasons for such differentials their failure should be put under the spotlight. I fully support the initiatives being undertaken by the Agency.

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