andMr. O'Toole asked the Minister for Industry, Commerce and Energy if he will explain the price increase implemented by Aer Rianta, which commenced on the day that duty-free facilities were introduced (details supplied); and if these increases were sanctioned by the National Prices Commission.
Ceisteanna—Questions. Oral Answers. - Aer Rianta Price Increase.
20.
The duty free facilities offered by Aer Rianta are available only to persons travelling abroad and such sales are outside the scope of the prices legislation. The question of sanction by the National Prices Commission does not, accordingly, arise.
Did the Minister investigate this case?
I did.
What was the reason for the increase which occurred on the very day that these duty free facilities were introduced?
It was an unfortunate coincidence?
Is the Minister quite happy that it was a mere coincidence?
I am.
I suppose that the 20 per cent increase on CIE fares is an unfortunate coincidence too. Arising from the Minister's reply, was permission sought for this increase and sanctioned for that date.
As I have already answered, there are no regulations with regard to permission being sought and so forth, because sales at duty free shops are for persons travelling abroad and are outside the scope of this type of legislation. I should say, however, and it is well to put on record, that supplies to the duty free shops at any of the airports and so on are purchased in accordance with strict public tendering regulations. Tenders are sought each January for duty free goods and prices are adjusted on 1 March of each year in the light of the increases sought by manufacturers. The increase in the prices this year on the same day as the introduction of the duty free sales was purely coincidental. However, Aer Rianta maintain that their prices for duty free goods are competitive in comparison with other international airports. For example, 200 cigarettes at Dublin Airport cost £2.75 compared with £3 at London, so that we are relatively competitive.
Is it Aer Rianta who decide on increases in prices in such cases?
Yes.
The increase in this instance was of the order of 25 or 30 per cent. That is hardly something that the Minister can be happy about.
I am happy that Aer Rianta are doing an excellent job.
That is not the issue.