Limerick East): I propose to take Questions Nos. 20 to 22, inclusive, together.
The general thrust of Government policy represents a movement away from detailed price controls in favour of new measures to promote greater competition throughout the economy. Detailed procedures requiring prior notification and approval of price increases have been allowed to lapse but the basic powers in relation to price control in the Prices Acts are being retained. These include powers to impose price controls where restrictive practices result in excessive prices and the new Fair Trade Commission will advise as appropriate in relation to prices.
The degree to which consumer prices can speedily reflect the impact of more favourable currency movements on import costs varies with the established purchasing arrangements of importers. Some importers may be committed to purchasing arrangements involving forward purchases of currency and this may delay a favourable impact on prices in some cases. Price reductions in line with currency movements and international oil prices have been effected in a number of areas and further developments are being monitored. I have no information available to me which would suggest that intermediaries are behaving in a manner detrimental to the interest of the consumer.
I am satisfied that there is keen price competition in the retail grocery sector and that this should help to ensure that the benefits of lower import prices should be passed on to consumers. Buyers should use their awareness of prices to encourage such competition. Any case where the benefits of lower import costs are not adequately reflected in consumer prices can be dealt with if necessary under the various powers available to my Department.
I have already asked the Examiner of Restrictive Practices to examine the price of alcoholic liquor and soft drinks in view of the provisions of the Restrictive Trade Practices (Intoxicating Liquor and NonAlcoholic Beverages) Order, 1965, which prohibits certain practices which are collusive in nature.
