asked the Minister for Industry and Commerce if he will consider the re-establishment of price control, especially in the reintroduction of the price line service, in view of the evidence to suggest that prices of some British products are being increased at a higher level in Ireland, despite the fact that the rate of inflation is lower here, and if he will make a statement on the matter.
Written Answers. - Price Control.
25.
I believe that greater competition and the operation of the market offer the most satisfactory means of ensuring fair price levels throughout the economy. The Restrictive Practices (Amendment) Act, 1987, has improved the implementation of competition policy by strengthening the agencies involved and extending the scope of their activities.
The Act has brought together enforcement functions under the Office of the Director of Consumer Affairs and Fair Trade.
On the reference to higher prices here than in the UK, I would refer the Deputy to the report by the Restrictive Practices Commission into alleged differences in retail grocery prices between here and the UK which was published in January 1988.
The chairman, in his report, found that most of the price differences were accounted for by differences in taxes, movements in currency rates and by monetary compensatory amounts (MCA) on certain products. When these factors were excluded, the differences shown by the surveys were comparatively small — generally from less than 2 per cent to about 6 per cent.
There is no evidence available to me which suggests that prices of British products sold here are increasing at a higher rate than in the UK.