Dáil Éireann debate -
Thursday, 29 Nov 2001

Vol. 545 No. 3

Written Answers. - Euro Changeover.

Bernard J. Durkan

Question:

59 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself in the run up to euro changeover day, that advantage is not being taken of the situation to introduce unfounded price hikes; and if she will make a statement on the matter. [30287/01]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. T. Kitt)

As I indicated to Deputy Durkan in my response to a similar question from him on 6 November last, I believe that the vast majority of traders want to behave honourably and responsibly during the changeover to the euro.

The introduction of the euro should not, of itself, require any trader to increase prices. Of course, it is open to any business to increase their prices if they want to do so. In the absence of a strict regime of price control that would require all price adjustments to be approved in advance, there is no way of proving whether such increases are justified. Likewise, it is open to traders to decrease prices, as presumably many will, during the period of the post-Christmas sales. This is the norm in an open competitive market.

Retailers, in particular, will be in the front line during the changeover process and will have a crucial role to play in facilitating acceptance of the euro by consumers. The retail market is highly competitive and at the end of the day those who seek to take advantage of the introduction of the euro by introducing unwarranted price increases will be punished by the market. Consumers need to realise the power they themselves have if they feel they are not being treated fairly and that is to take their business elsewhere. This is the ultimate sanction for any trader who seeks to take advantage of the changeover.

I firmly believe that dual display of prices is the key to helping consumers and traders alike prepare for, and become more confident in, using the euro. Through exposure to dual display consumers can compare prices between Irish punts and euros and build up a scale of values for themselves in the new currency. That is the objective of the national code of practice on dual display of prices. The benefits of co-operating together to ensure the smooth introduction of the euro have also been recognised by the groups of traders who participated in drawing up their own sectoral codes of practice on dual display of prices.

The large numbers of traders who have already signed up to the codes of practice are entitled to display a special logo approved by the Director of Consumer Affairs as evidence of a commitment to carry out the changeover fairly. These traders recognise that it makes good business sense to be in a position to demonstrate to their customers that they have made a commitment not to seek any unfair advantage from the changeover. I strongly urge retailers who have not yet done so to contact their trade association or the Office of the Director of Consumer Affairs, without any further delay, and sign up to one of the codes of practice.