Mary Upton (Dublin South Central, Labour)
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Question 160: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the reason the National Consumer Agency does not address the issue of the serious anomalies between sterling prices and euro prices for goods available in shops here; and if she will make a statement on the matter. [42724/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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Concerns in relation to the differential in the prices charged for some goods in this jurisdiction as against the prices charged in Northern Ireland and the UK have been expressed by a number of commentators, not least the National Consumer Agency. These concerns have focused on the recent significant increase in value by the Euro against sterling and the belief that the benefits of this appreciation are not being passed on to consumers. The National Consumer Agency, for its part, earlier this year conducted a survey of the price of a range of branded and own-brand goods charged by a number of prominent retailers operating both north and south of the Border. The survey found that customers in the Republic were being charged up to 31% more than customers in Northern Ireland in respect of certain branded products and up to 17% more in respect of own brand items.

Given 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 my discussions and contacts with the retail sector, retailers responded to the effect 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. In the light of these responses, 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.

It is my firm view that where retailers are charging significantly different prices for goods to their customers in this jurisdiction when compared with prices charged to their customers in other jurisdictions such as Northern Ireland and the UK, those retailers have a duty to their customers and to the economy to explain why they are charging such price differentials. I expect to receive Forfás' analysis of the situation shortly following which I intend to pursue this matter with the retail sector.