Dáil Éireann debate -
Tuesday, 25 Mar 2003

Vol. 563 No. 4

Written Answers - Consumer Protection.

Eamon Gilmore

Question:

119 Mr. Gilmore asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to a recent EU survey showing that recommended pre-tax prices of many cars are up to 10% higher than in other European countries; the steps she intends to take to ensure that those purchasing cars here get a fair deal; and if she will make a statement on the matter. [8117/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I am aware of the survey referred to by the Deputy. It was carried out by the European Commission in November 2002 and published last month. The consumer survey provides detailed information on the extent to which pre-tax prices for cars vary between member states. The methodology employed was to ask 18 European and eight Japanese manufacturers to supply the Commission with the recommended retail prices, as of 1 November 2002, of 84 of their best-selling models. The reference price for the calculation of differentials for any model is that of the cheapest country within the euro zone.

In so far as Ireland is concerned, I understand the survey shows that car prices before taxes varied from being the cheapest in relation to three models to being up to 34% higher in relation to one model. Of the 84 models in the survey, 71 are available in the Irish market and Ireland is in the cheapest 33% bracket in relation to 29 models. In overall terms, pre-tax prices of cars are 9.53% higher in Ireland than corresponding prices in the countries where prices are lowest. No doubt factors such as transport costs and right-hand drive are contributing to this divergence.

Overall, the report showed that the divergence between prices in Europe has narrowed since the previous survey of May 2002 and that there was a decline of 0.2% in car prices generally. I expect that when the new competition rules for the motor vehicle sector come into force in October of this year there will be an even narrower divergence and that consumers will benefit from the new competition rules in this sector which are designed to give the consumer more choice.