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Dáil
‹ Leaders’ Questions.

Retail prices and euro exchange-rate savings

Summary

Gilmore says Irish consumers have not benefited from the euro’s appreciation against sterling and presses the Government to take stronger action. The Taoiseach says the National Consumer Agency and Tánaiste will engage retailers, and that the Government will consider further measures if their responses are inadequate.

There are occasions when, in the country's interest, the Taoiseach will have to resist the temptation to give the Opposition parties a kick every time he sees us.

I wish to ask the Taoiseach about the prices issue I raised last week. I was glad that after I raised the issue here last Wednesday, the Taoiseach asked the Tánaiste to get a handle on the problem. Following that, I understand the Tánaiste had discussions with the National Consumer Agency. I see from a radio interview given by the chief executive of that agency on Friday, that the NCA will conduct a survey of prices in retail outlets. However, a bit more than a survey is required to deal with the prices problem I raised last week. I ask the Taoiseach to address a number of ways in which this problem can be tackled. First, if the National Consumer Agency is doing a survey, can the Taoiseach ensure it will list retail outlets that are ripping off Irish consumers? For example, retail branches of British multiples that have one price in the UK and another price here should be named and shamed in the survey.

Second, will the Taoiseach ask the Tánaiste and Minister for Enterprise, Trade and Employment to introduce regulations to allow people to pay by credit card in sterling for goods that are marked in sterling prices? In other words, if goods are priced in sterling, people should be able to pay for them by credit card in sterling.

Third, will the Taoiseach ask the Tánaiste to introduce regulations, which she is entitled to do, under section 50 of the Consumer Protection Act for the labelling of goods, so that where prices are marked in sterling and in euro, the euro equivalent of sterling at a particular date is given? I appreciate this cannot be done every day because of varying exchange rates. However, one should be able to display the sterling price with the euro equivalent on whatever date. If a separate euro price is charged it should also be marked. In that way, consumers can see the extent to which they are being ripped off.

Fourth, will the Taoiseach call in the senior management of the large British multiples and tell them in his own blunt language what is required of them in this country, and that the ripping off of Irish consumers will not be tolerated?

Fifth, will the Taoiseach ask the National Consumer Agency and the Competition Authority to examine what is happening with regard to diesel prices, which I also raised last Wednesday? They have shot ahead of petrol prices, even though they have traditionally been lower.

Comment on this

This matter has been discussed by the Government. Arising from that meeting it has been decided that the National Consumer Agency will again meet Retail Ireland, which is part of IBEC, in the near future to discuss the delays in passing on the benefits accruing from the appreciation of the euro. The Tánaiste will be talking to Retail Ireland in the morning. We have also arranged for contact to be made with the major retail outlets, both here and in the UK, in the coming days to ask what plans they may have to deal with any unjustified price differentials that exist.

The National Consumer Agency will undertake a greater number of surveys with particular emphasis on North-South pricing by big retailers across a whole range of goods from groceries to clothing. In addition, the National Consumer Agency will undertake a more extensive information campaign to keep consumers better informed on pricing developments. The advice from them that consumers split their grocery shopping basket if possible and seek value in the range of shops available to them remains valid.

The increase in the price of diesel seems to be linked to a huge demand in China. The price of diesel does not come under the auspices of the National Consumer Agency. It is a question of trying to do what we can in that respect. There is a background to the increase in oil prices that sets out that situation. The Government will do absolutely everything it can to ensure that public awareness is at its highest and that people are aware of the situation. Whatever assistance we can give, including, if possible, accommodating some of the suggestions made by the Deputy, will be given. The Tánaiste will contact, through meetings of the National Consumer Agency, Retail Ireland. She will write to the heads of the retail outlets in Ireland and in Britain to ascertain what plans they have to deal with the situation.

Comment on this

I am pleased to hear some action is being taken to deal with this problem but it will require more than just pleading with the British retailers concerned and it will take more than meetings between the National Consumer Agency and Retail Ireland. The Government needs to show that, if necessary, it will flex its muscles on this issue. This has gone on for quite a while. The change in the relationship between the euro and sterling has been in play for some time and the value has not been passed on to the Irish consumer. With each passing day, consumers are continuing to be ripped off. I appreciate that attention is being given to the matter arising from the question I raised last Wednesday, but the full powers of the Consumer Protection Act need to be used by the Minister. There are powers in that Act which provide for regulations to be made by the Minister in regard to labelling which, I understand, would include price labelling. If necessary, additional regulatory and legislative measures should be introduced to force retailers to adopt practices that are not ripping off Irish consumers. I am glad that some attention is being given to this matter. I ask the Minister to look to the powers available to her under the Consumer Protection Act and to the possibility of strengthening those powers, if necessary.

Comment on this

As I said, this matter has been discussed by the Tánaiste and me and by the Government since this issue was brought to the floor of the House. I have indicated that whatever action can be taken by Government will be taken. The Tánaiste will arrange for correspondence to issue to the organisations concerned which will set out clearly what we expect and what we believe should be possible. We will look at the situation in terms of the reply we receive. If the reply is not what I expect, the Government will look at every lever available to it to ensure consumers are protected in this jurisdiction and that they get the same value for money as people can expect elsewhere.

Comment on this