Dáil Éireann debate -
Wednesday, 24 Feb 1993

Vol. 426 No. 6

Written Answers. - English Newspaper/Magazine Prices.

Jim Mitchell

Question:

89 Mr. J. Mitchell asked the Minister for Enterprise and Employment if his attention has been drawn to the widespread concern that the English newspapers and magazines on sale in Ireland are still being sold at a price in Irish pounds greater than the sterling price in the UK even though for some months the Irish pound is of greater value; if there are any other factors which would explain a difference in price including VAT differences between Ireland and the UK; and the steps, if any, he proposes to take to correct the situation.

Minister for Enterprise and Employment (Mr. Quinn)

The House will be aware that statutory price control generally was abolished in 1986 with the disbanding of the National Prices Commission. Currently there are no statutory price controls in operation. The emphasis of successive Governments since 1986 has been to refrain from direct interference in business and to avoid employing bureaucratic measures that would impose unnecessary burdens on business or consume scarce public funds. Accordingly, I do not have official information readily available about prices.

However, as regards the concerns mentioned by the Deputy, I understand that, following the practice advocated by the former National Prices Commission, when price control generally was in operation, importers of magazines from the United Kingdom enter into legally binding contracts to buy sterling on a six-monthly basis. Consequently, when comparing prices, it would not be appropriate to merely convert from the stated sterling charge to Irish currency as at a current date. In addition, as the product is VAT free in the United Kingdom, due allowance for this and the additional cost of transport from the United Kingdom to Ireland must be taken into account when a comparison between retail charges here and in the United Kingdom is being made. I understand that United Kingdom newspapers have their Irish sale price determined in the United Kingdom. The last contracted sterling change took place in November last. This resulted in a reduction in cover prices of approximately 8.5 per cent. The next currency-related cover price adjustment should take place in May.