I propose to take Questions Nos. 7, 34 and 92 together. I have considered the case made by the Radio and Television Retailers' Association and others that the ESB's retailing activities in the electrical appliances sector give rise to unfair competition for other electrical appliance retailers. In particular, I have considered suggestions that the ESB cross-subsidise their electrical appliance sales business, offer favourable credit terms and have an unfair advantage over their competitors in relation to their billing system.
At the outset I would like to emphasise that it is perfectly legitimate for the ESB to be involved in appliance retailing under the provisions of the Electricity (Supply) Act, 1927.
In relation to cross-subsidisation I am informed that the ESB's appliance sales business is operated on a normal commercial basis. In relation to their credit terms I am informed that the ESB's average percentage rates on all appliances is approximately 24 per cent which is similar to that offered on hire purchase by other retailers. These are, I understand, displayed on all merchandise in the ESB's showrooms. Exceptional special promotions are undertaken at the request of, and funded by, suppliers where interest free credit is offered for particular goods if payment is made within a year. Similar promotions are undertaken by other retailers.
The ESB's billing system undoubtedly facilitates the promotion of, and repayments in, their electrical appliances business, and in this regard gives the ESB an advantage not available to their competitors. While it is, of course, acceptable for any business to maximise its natural advantages, it must not do so, in particular, by availing unfairly of advantages it enjoys uniquely by virtue of being in a monopoly position. In order to ensure that such is not occurring in this particular case, I have decided to ask the Director of Consumer Affairs and Fair Trade to carry out an investigation into this aspect of the ESB's involvement in the electrical appliances sector.