Vol. 410 No. 6
36 Tomás Mac Giolla asked the Minister for Industry and Commerce if, in view of the higher than expected level of inflation for the quarter to mid-May, he intends to carry out any investigation to determine whether retailers have passed on the full value of the decrease in the higher VAT rate, announced in the budget, to consumers; and if he will make a statement on the matter.
Following the 1991 budget, I asked the Director of Consumer Affairs and Fair Trade to carry out a campaign designed to encourage manufacturers, retailers and distributors to ensure that consumers benefit from the reduction in the standard rate of VAT announced by the Minister for Finance in the Budget Statement. This the director has done and I am awaiting his report on the exercise.
I would emphasise that, ultimately, it is in the hands of consumers themselves to ensure that they reap the benefits of lower prices deriving from lower VAT rates by being aware of price developments and prices charged by different outlets and by purchasing accordingly. This is at the core of a competitive market.
