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Dáil Éireann debate -
Thursday, 12 Dec 2002

Vol. 559 No. 3

Written Answers. - Price Control Measures.

Richard Bruton

Question:

56 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself that there are not excessive margins being charged on soft drinks in public houses; and her views on measures such as a price cap, compulsory display of prices and margins and so on to discourage this practice. [26223/02]

The pricing of goods or services by businesses is a commercial matter. However, I am aware that transparency is most important to allow consumers choose effec tively when purchasing goods or services. Accordingly, the Retail Price (Beverages in Licensed Premises) Display Order, 1991, requires that the price of both alcoholic and soft drinks be displayed immediately outside or immediately inside each entrance to a licensed premises. The purpose of the order is to ensure that consumers are aware of the prices charged before they enter a licensed premises.

I am opposed to the reintroduction of price caps or price control. It is an ineffective and discredited policy instrument. Competition in the licensed trade would be the most effective way of bringing about a reduction in the prices of drinks sold on such premises.

A review of the licensing regime is being undertaken by the commission on liquor licensing established in 2001 by the Minister for Justice, Equality and Law Reform. It is expected to report in mid-March of 2003. Were that commission to conclude that greater liberalisation in the issuing of liquor licenses is justified, I would expect such a recommendation to be implemented without further delay. That would without doubt give people the benefits of increased competition and a significant reduction in the hugely inflated prices being charged for soft drinks in pubs would inevitably result.

Question No. 57 answered with Question No. 6.

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