Imported literature prices and surcharges
The Minister attributed higher Irish prices to sterling’s appreciation and VAT, said the cited 50 per cent gap was closer to 21 per cent, and described a monthly surcharge reviewed with the National Prices Commission. He could not give the investigation’s start date or identify the last price reduction; Deputy Keating disputed that prices had ever fallen.
asked the Minister for Industry, Commerce and Tourism, if he is aware that the cost of magazines, books and periodicals imported into Ireland from Britain is approximately 50 per cent higher here than in Britain; if he considers that this extra cost is excessive in view of the fact that there is a 10 per cent VAT charge and that even allowing for the rate of exchange between the IR£ and sterling this margin is far too high; if he has had this matter investigated; if so, if he will outline the results of his investigations; and the action, if any, he proposes to alleviate the problem.
Comment on this
I am aware that the price of magazines, books and periodicals imported into Ireland from Britain is higher here than in Britain, because of the appreciation in value of sterling and the 10 per cent VAT on such products.
A rate of surcharge, which is adjusted each month, is imposed in agreement with the National Prices Commission. The rapid appreciation of sterling has necessitated an addition to the amount of surcharge warranted by current exchange rates in order to recoup losses already incurred by importers on the operation of the surcharge. The National Prices Commission are carrying out a detailed examination into the present system of levying the surcharge and I am expecting their report on the matter shortly.
Comment on this
I am expecting the report in the very near future. I should like to add that the 50 per cent to which the Deputy referred in his question is not factual; it is much nearer 21 per cent. The Deputy has compared the price in sterling with that in Irish pounds. That is why the question is inaccurate.
Comment on this
When did the National Prices Commission initiate this report? What was the date on which they commenced this investigation?
Comment on this
Do I take it that the investigation was commenced when this question was put down? Would that not be a more factual admission on the part of the Minister? Can the Minister give me a date?
Comment on this
When did the National Prices Commission initiate the investigation to which the Minister referred?
Comment on this
Can the Minister give me a date? The Minister is now awaiting the result of this investigation——
Comment on this
In view of the fact that the Minister indicated that the National Prices Commission monthly report agrees with the imposition of a surcharge to take account of the difference between sterling and the IR£, do I take it that the surcharge manages now and again to reduce the price of such magazines? When, therefore, did the last reduction happen to take account of the fluctuation in the value of the IR£?
Comment on this
It takes place almost every time there is a fluctuation in currencies. This is an ongoing thing. It is not something in regard to which one can say emphatically "yes" or "no".
Comment on this
My point simply is this: if the fluctuation relates to the rise and fall of sterling is it not reasonable then to conclude that the prices sometimes fall? When last did they fall?
Comment on this
Then I would suggest to the Minister that it is a lot of nonsense, that the prices never came down on even one occasion and that he knows that as well as I do.