Written answers

Wednesday, 24 September 2008

Department of Enterprise, Trade and Employment

Consumer Protection

9:00 pm

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 130: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of meetings she has had with the National Consumer Agency since 21 May 2008; the number of legislative or policy proposals she has received from the agency in relation to Government legislation or proposals; if she is satisfied that the National Consumer Agency is doing everything in its power to protect consumers from rip off prices and unscrupulous practices; and if she will make a statement on the matter. [31010/08]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I would advise the Deputy that I have met the Chief Executive of the National Consumer Agency on two separate occasions since my initial meeting on 21st May 2008. In addition my officials liaise with the Agency on almost a daily basis. A range of issues were discussed in the course of these meetings including the issue of prices, grocery prices and the pricing of UK goods in Ireland. In particular, I discussed with the Chief Executive the initiatives being undertaken by the Agency through its price comparison surveys to raise consumers' awareness of prices, highlighting the value to be found by consumers making strategic decisions in relation to their grocery shopping and as a result encouraging increased competition between retailers.

I very much welcome the fact that the available evidence indicates that the Agency's efforts in raising price awareness among consumers is having a material effect and that more people are changing their shopping habits, spreading their grocery shopping and are now prioritising price considerations when making their decisions on where to shop. Recent research commissioned by the Agency showed that 56% of grocery shoppers are shopping in a particular store based on price and that convenience is no longer the primary reason for choosing a particular grocery store. This significant shift in consumer attitude is reflected in the fact that the price of food, as measured by the Consumer Price Index published by the Central Statistics Office, continues to fall. The CSO's returns show that food prices have fallen for the past three months in a row.

In addition to its initiatives in the area of food prices, the Deputy may also be aware that I recently requested the Agency to undertake a survey into the underlying reasons as to why pump prices for petrol and diesel have not fallen in line with the drop in the wholesale price of oil. Given the impact that transport costs can have on the average household budget, it is incumbent on fuel retailers to explain why the pump price of their products have not reduced proportionately to the reductions in the wholesale price of oil.

Aside from its price awareness initiatives, the Agency has also been active in advocating a fair deal for consumers in a range of other areas. In this regard, the Agency successfully negotiated on behalf of 2,500 concert-goers with the promoter of a concert for varying levels of compensation arising out of difficulties experienced at that concert. The Agency also successfully intervened to advocate on behalf of consumers who had booked flights to the USA at a particular price which the airline was not prepared to honour. In addition the Agency advocated on behalf of broadband users and in co-operation with the Advertising Standards Authority of Ireland and the Communications Regulator put in place measures to address difficulties in relation to the manner in which broadband services are advertised, particularly in the areas of service delivery and performance. Another advocacy initiative undertaken by the Agency was the establishment of its Stakeholder Forum on Multi-Unit Developments. The aim of the Forum is, through the involvement of the various stakeholders, to try to address some of the problems being experienced by dwellers of Multi-Unit Developments. As a result of the work of the Forum, the Agency has published specific Guidance and Educational material to assist Multi-Unit Development dwellers.

The mandate given to the National Consumer Agency under the Consumer Protection Act 2007 was specifically framed to enable the Agency to act as a powerful voice for the consumer including raising awareness of consumer welfare and advocating the consumer's case against unscrupulous practices. I welcome the manner in which the Agency is embracing its mandate and I fully support it in its efforts to ensure that consumers do not suffer from unnecessary price increases and unfair commercial practices.

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