asked the Minister for Industry and Commerce if his attention has been drawn to the findings of a survey conducted on behalf of the European Commission's Consumer Services Division which showed that consumers in the Irish Republic pay up to 20 per cent more for groceries and up to 70 per cent more for soft drinks than consumers in Northern Ireland; if he intends to hold any investigations into the reasons for this price disparity; if he intends to take any action to have prices in the Republic reduced; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - European Commission's Consumer Services Division Survey.
8.
I am aware that the survey of cross-Border prices, commissioned by DG XI of the EC Commission and undertaken by the Consumers Association of Ireland in association with the General Consumer Council for Northern Ireland, was published on Thursday, 6 October 1988. The findings of the survey showed that, based on a comparison of median prices, substantial price differences existed in favour of the North in almost all product categories surveyed. However, further analysis of the results showed that, with reference to actual prices, in two out of every three products surveyed the lowest price here was less than the highest in the North. By shopping around here, consumers may find that the cost of goods varies very little from the cost in the North.
The Deputy will recall that in January of this year I published a report from the Restrictive Practices Commission, now Fair Trade Commission, on alleged differences in retail grocery prices between here and the UK, including particularly Northern Ireland. This report found that most of the price differences were accounted for by differences in taxes, movements in currency rates and by monetary compensatory amounts which are known as MCAs on certain products. When these factors are excluded, the differences were comparatively small — generally from less than 2 per cent to about 6 per cent. I do not believe that a further investigation is warranted at this time.
I do not believe in unnecessary intervention in the marketplace and I have no intention of re-introducing comprehensive price control.
I am disappointed by the Minister's reply. He said that he found that the lowest price here in the South was the same as, or lower than, the highest price in the North and that all people had to do was shop around.
Ceist, a Theachta.
How far do you have to shop around between Dublin and Sligo, Cork, Donegal or wherever? Is the Minister not also aware that the price difference for a six-pack between Dublin and Sligo is £2? To compare the lowest price in the South with the highest price in the North is not an adequate answer.
That is only part of the answer. The Deputy should look at the rest.
I am asking the Minister if he would look again at the survey or perhaps institute his own survey taking into account all taxes, currency differences and so on, to see to what extent there is a rip-off here. In many cases there is a rip-off in different areas of the country with different products.
I have already told the House about all the surveys that we have carried out. If you want to pick one particular product from a range of supermarket prices and compare it with elsewhere you will always find a differential. Even in supermarkets belonging to the same group you will find different prices obtaining in different towns throughout the country. We must have our survey on an across the board basis, comparing like with like, not just picking one particular item, as the Deputy suggests, and trying to base a whole conclusion on that. That is not what we do. We are constantly keeping the question of distortion of prices under review.
There are 203 of them.
I have taken action in relation to below-cost selling where I felt that it was detrimental to the consumer——
Not in relation to potatoes.
——and in any other instances where I find that any position is being abused, as has been seen over the last 12 months, I have not hesitated and will not hesitate to take any action.
The Minister did not do anything about potatoes.
That is a question which will come up later and it is being reviewed.
Reviewed? That is a kick for touch.
The Minister in his reply referred to the report of the Restrictive Practices Commission. Would he indicate if all the recommendations made by that commission in that report concerning differential between prices here and North of the Border have been implemented by him? If he is not able to give that information now, perhaps he would send it to me.
I have not the information available here. I will send it on to the Deputy.
Would the Minister agree that much of the disparity occurs in the area of what is called the short price, which is the price without any duties added? Even manufactures within this country are able to sell out of the factory before the item reaches the retailer at a lower price in the North of Ireland than that at which they are supplying into the market here. Would the Minister agree that there is a need to look at this area before we look at disparity between taxes, which we all accept there is? The area being missed is the short price one and there is a big problem there. There are many manufacturers coming into Ireland and leaving goods within this country.
We must look into every aspect. If you take a loss leader price in any given place and compare it with the normal price somewhere else you will find a differential. Advertising is being used to very good effect to try to confuse the consumer as to where the best value lies. The huge distortion about which we hear as between North and South in reality does not exist when you compare like with like across the same range of products and do not take one product and a different one elsewhere. If you take the same product over a given period and make sure that you are including loss leaders in one place and in another, you will make a satisfactory comparison.
Unless you compare like with like, you will not get the true result. As I have said, there is a differential. I have listened to Deputy Cullen's comments, but I wish to say it is part of our continuing monitoring of information in this area.
Where will the Minister get advertising experience?
I will let the Deputy know after Question Time.