Bríd Smith (Dublin South Central, People Before Profit Alliance)
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25. To ask the Minister for Enterprise, Trade and Employment if he has considered using price control mechanisms to limit price rises on basic commodities such as milk, bread and so on; and if he will make a statement on the matter. [38603/22]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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150. To ask the Minister for Enterprise, Trade and Employment if he has considered using the provisions of the Consumer Protection Act of 2007 to limit price rises on basic food products; and if he will make a statement on the matter. [38605/22]

Dara Calleary (Mayo, Fianna Fail)
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I propose to take Questions Nos. 25 and 150 together.

Sections 61 and 62 of the Consumer Protection Act 2007 provide powers for the Government to declare a state of emergency in relation to the supply of a product and to set a maximum price for the sale of that product. The provisions only apply in relation to sales of products to consumers. The 2007 Act repealed the Prices Act 1958 and the Prices (Amendment) Act 1972 which had similar provisions. It should be noted that the 1958 Act was brought in as Ireland emerged from rationing and was likely to have been employed to stem hoarding and the inflationary impact arising from sudden demands, as supply restrictions were relaxed.

In general, maximum ceilings are not set for prices in Ireland. Such an approach aims to promote competition amongst retailers and service providers. Some sectors are regulated and, depending on the sector, the regulator can influence.

Price controls are crude instruments in terms of their aims, and their use may lead to distortions in the market. The setting of too low a price would affect availability and supply, making a bad situation worse. While prices for a controlled product will have stabilised, the pricing could cause a shortfall in availability, withdrawal of supply, reduction in quality, and have a more lasting damage on the supply chain network as retailers and suppliers withdraw from the market for commercial reasons. On the other hand, the setting of too high a price would make the measure ineffective.

To ensure that any imposition of price controls are at just the right point would require a level of foresight on international trends and input price fluctuations as well as a system which would allow prices to be continually reset. Furthermore, the system would require the capability to set prices across products deemed particularly important around which, no doubt, there would be considerable debate as well as a capacity to monitor and enforce pricing.

There could also be risks to our international reputation were Ireland to unilaterally introduce price controls on goods that are internationally traded. Ireland is an open economy. Many of the products we purchase are imported, or significant components of those products are imported. It is very difficult to see how price controls could be successfully implemented when suppliers and manufacturers are relying on imported goods and inputs, the price of which, is not amenable to control.

I can assure the Deputy, Government is acutely conscious of the cost-of-living challenge for people and the rise of input costs for business at the moment. Our responses must help, and not make the situation worse. The fundamental problems lie with matters outside of our domestic control. So we must help our people and businesses through the challenging period and I am confident that Government will shortly introduce a significant range of further measures to alleviate the pressures felt by people and businesses in this regard.