Bernard Durkan (Kildare North, Fine Gael)
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Question 66: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she or her Department have investigated the situation whereby it appears that recent currency fluctuations likely to benefit Irish consumers do not appear to have been passed on particularly by chain stores with similar outlets here and in the UK or Northern Ireland; and if she will make a statement on the matter. [42057/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am aware of the concerns that have been expressed that a number of retailers may not be passing on to consumers the benefits of the Euro's recent appreciation in value, particularly against Sterling. These concerns were heightened by a survey undertaken by the National Consumer Agency of the price of a range of branded and own-brand goods charged by a number of prominent retailers operating north and south of the Border. The survey found that customers of these retailers in the Republic were being charged up to 31% more than their customers in Northern Ireland in respect of certain branded products and up to 17% more in respect of own brand items.

Arising from these concerns, I initiated an engagement with the retail sector as to the reasons why the benefits of the Euro's appreciation were not being passed on to consumers. In the course of that engagement I met with IBEC and leading members of Retail Ireland, and also wrote to major individual retailers, to express the Government's concern on this matter. In response, retailers advised that while the retail price of goods imported from the UK had lagged exchange rate movements due to factors such as the forward purchase of goods and currency, there had already been reductions in the price of some goods and further reductions were in the pipeline. Retailers also advised that one of the main reasons for the price differential was that the cost of doing business in Ireland was significantly higher than that in the UK. To that end, in September of this year I requested Forfás to carry out an analysis of the relative cost of doing business in a number of locations in the Republic, Northern Ireland and the UK. I intend to pursue this matter with the retail sector on receipt of Forfás' analysis, which I expect to receive shortly.

It is my strong view that where there are significant differentials in consumer prices as demonstrated by the findings of the National Consumer Agency's cross border survey, retailers have a duty to their customers and to the economies in which they operate to explain why there are such differentials. It is my intention to continue to engage with the retail sector on this matter.