Eamon Gilmore (Dún Laoghaire, Labour)
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Question 162: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on her visit to the Dublin offices of the National Consumer Agency on 7 August 2008; if she is satisfied that the agency has sufficient powers and resources to provide adequate protection for consumers; the specific steps she will take to deliver on her commitment made during the visit to ensure that Irish consumers get a fair deal on price, on choice and on quality in their weekly shopping basket; and if she will make a statement on the matter. [30914/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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I would advise the Deputy that following my meeting with the Chief Executive of the National Consumer Agency on 7th August, I did issue a public statement reaffirming the Government's determination to ensure that Irish consumers get a fair deal on price, on choice and on quality in their weekly shopping basket. In the course of that statement, I also reaffirmed the Government's strong belief that arming consumers with all the necessary facts and figures to make informed choices in relation to the goods and services that they buy is the best way to ensure that consumers can achieve a fair deal. In this regard I took the opportunity to discuss with the Chief Executive the Agency's initiatives in the area of Price Comparison Surveys.

Since the meeting, the Deputy will be aware that the Agency published its most recent Grocery Price Comparison Survey on the 11th September. The survey found that there has been a significant decrease in the prices of own brand goods across all the retailers in the grocery sector unlike the position in relation to branded products where the price differential between retailers seems to be narrowing.

Research commissioned by the Agency shows that price is becoming more and more of a priority to consumers when making their decisions where to shop. The research 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 fell by 0.3% in August, the third month in a row that the food price index has fallen. These welcome price decreases are concrete endorsements 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.

Notwithstanding these developments and other indications of the catalytic effect that consumer behaviour is having by way of enhancing competition among retailers in the grocery sector, there is, as I remarked in my public statement, some way to go particularly in relation to the price differentials in the branded goods area. It also remains a matter of concern that the differential between the price of groceries in Ireland and the price of groceries in Northern Ireland or in the UK remains relatively high given the appreciation in value of the Euro against sterling. In this regard I have requested Forfás to carry out an assessment of the relative cost of doing business in a number of selected locations, including locations in this jurisdiction, Northern Ireland and the UK. I intend to continue to engage with the retail sector on this issue once the results of Forfás' assessment are available.

I welcome the initiatives undertaken by the National Consumer Agency to ensure that Irish consumers have the necessary information to make informed choices in relation to the goods and services that they buy. In conjunction with the Agency, I am determined that progress continues to be made to ensure that consumers get a fair deal and do not suffer from unjustified price increases.