Dáil Éireann debate -
Tuesday, 22 Jun 1993

Vol. 432 No. 6

Written Answers. - Cost of Car Parts.

Proinsias De Rossa

Question:

25 Proinsias De Rossa asked the Minister for Enterprise and Employment if his attention has been drawn to the recent survey carried out by the Irish Insurance Federation which revealed that car parts in Ireland cost on average 43 per cent more than in the United Kingdom; if he has satisfied himself that such a wide price variation is justified; if he will request the Director of Consumer Affairs to carry out an investigation into the pricing of car parts; and if he will make a statement on the matter.

Minister for Enterprise and Employment (Mr. Quinn)

The one page survey published in the March edition of the IIF magazine "Insurance Update" has been brought to my attention. That survey covered the "average cost" of 11 body parts most often damaged in accidents, for ten best-selling cars.

On the face of it the price differential on car parts referred to by the survey is significant and this might be a cause for concern. I am conscious, however, that there may be particular factors which should be taken into account before coming to any firm conclusion on the issue, for example the small size of the sample chosen, the stocking policies and stocking location of the particular parts selected for the sample. In addition there are taxation implications, which matter is the responsibility of my colleague, the Minister for Finance.

The emphasis of the Government is on the development of competition in every sector of enterprise and encouraging further consumer awareness of prices. In this regard the Competition Act, 1991 sets down the legal framework which is necessary to protect the market and to promote the principles of free and fair competition in which the market operates. Consumers also have a particular role here and should be sensitive to the range of prices on offer and purchase accordingly.

While I am conscious, as I have said, that particular factors may have to be taken into account in forming a view on this question, I have asked the Director of Consumer Affairs to consider what advice he might give on the matter.