Róisín Shortall (Dublin North West, Labour)
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Question 138: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the reason consumers here continue to pay more for goods sold here by British retail outlets; if the National Consumer Agency has been actively investigating the price differences in goods sold here and in the UK; and the action her Department is taking to ensure value for money for consumers here. [42973/08]

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. 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.

These concerns were heightened by the findings of a survey conducted earlier this year 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 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 intention on receipt of Forfás' analysis of the situation, which I understand will be finalized shortly, to pursue this matter further with the retail sector.