Shane McEntee (Meath East, Fine Gael)
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Question 60: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the National Consumer Agency price survey which showed a 50% differential in retail prices between Northern Ireland and the Republic of Ireland; her further views on whether this is fair to retailers here; and if she will make a statement on the matter. [7347/09]

Liz McManus (Wicklow, Labour)
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Question 62: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she will take to require retailers to explain price differentials in view of her recent address to the Checkout Conference 2009; and if she will make a statement on the matter. [7270/09]

Liz McManus (Wicklow, Labour)
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Question 94: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the Forfás report published in December 2008, which found that while retail costs are higher here, this differential could not account for the significantly higher prices being charged for many key consumer goods here; and if she will make a statement on the matter. [7269/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 60, 62 and 94 together.

The issue of north south price differentials has been the subject of concern for some time. The House will be aware of the widespread concerns, particularly amongst consumers, that the benefits of the Euro's appreciation in value against Sterling are not being passed on by way of lower prices in the shops. These concerns were heightened by a number of cross border surveys undertaken by the National Consumer Agency which showed significant differentials in the price of a range of goods in this jurisdiction as compared with prices for those goods in Northern Ireland.

In the light of these concerns, I initiated an engagement with the retail sector to ascertain the reasons why the benefits of the Euro's appreciation were not being passed on to consumers. In the course of this ongoing engagement, I have met with the various links in the retail chain including retailers, suppliers, distributors and manufacturers. Different and indeed conflicting reasons have been proffered as to why prices in this jurisdiction are higher than in the Northern Ireland and the UK. Prominent among these reasons was that the cost of doing business in Ireland was significantly higher than the cost of operating in the UK. Accordingly, 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. Forfás' analysis, which was published late last year, found that whilst the cost of doing business was indeed higher in this jurisdiction, the extent of this additional cost would only justify a differential of 5-6% in prices between the south and the north. It is clear therefore, that operating costs, whilst somewhat higher in this jurisdiction, do not account for the current level of price differentials.

Aside from operating cost considerations, there is considerable disagreement among the different elements of the retail chain as to reasons for the north south price differentials. In my meetings with retailers, they have strongly contended that the costs to retailers of sourcing goods in Ireland is significantly greater than the costs of sourcing such goods in Northern Ireland and the UK and that the current structure of the wholesale and distribution cost base in Ireland is preventing the benefits of the Euro's appreciation in value from being passed on to consumers. Suppliers and distributors for their part have contended that there is a significant imbalance in the relationship between retailers and suppliers which is giving rise to suppliers being squeezed by the increasingly difficult demands being made by retailers.

The Government for its part is strongly of the view that it is not acceptable that the benefits of the Euro's appreciation of approximately 30% in value over sterling is not being passed on by way of lower prices to consumers in all cases. It is incumbent upon all links in the retail chain to play their part in ensuring that there is the greatest degree of transparency possible as to reasons for the current north south price differentials, particularly given their possible impact on the national economy in terms of loss of employment, loss of trade, loss of revenue to the exchequer and loss of value to the consumer. It is my intention, therefore, to continue to pursue this issue with the retail sector to ensure that Irish consumers receive a fair deal and value for money when doing their day to day shopping.