Dáil Éireann debate -
Tuesday, 9 Dec 2003

Vol. 576 No. 5

Written Answers. - Retail Sector Developments.

Kathleen Lynch

Question:

151 Ms Lynch asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the recent findings of the survey commissioned by RGDATA and IBEC, which found that the retail cost of food rose by 36% between 1990 and 2002, even though farm gate prices fell by 2% in the same period, and further found that only 28% of those surveyed were of the view that they paid a fair price for food; if she has satisfied herself that sufficient procedures are in place to provide protection for consumers; and if she will make a statement on the matter. [29994/03]

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

I have noted with interest the recently published report entitled "Food Production and Food Prices in Ireland", which was prepared by Tansey Webster Stewart & Company for RGDATA, IBEC and IADT. The report points to two major factors as contributing significantly to food price inflation in Ireland. These are, first, in the period since 1990, increases in business operating costs in Irish manufacturing, distribution and retailing and, second, in more recent years, the impact on the price of imported food of the depreciation of the euro against sterling.

The report confirmed the importance of the food and drinks industry to our economy in terms of employment, exports and consumer spending. Its analysis of food prices and related matters is a valuable contribution to our understanding of many issues in that area. While not necessarily sharing every opinion or impression conveyed by the report, I think a number of useful policy pointers emerge from it including the value of good analytical research, on an ongoing basis, into consumer prices generally. In this regard, I have requested Forfás to follow up its consumer pricing report, 2003, with further prices investigative work focusing on specific sectors.

The report also identified the importance of keeping under active review the effectiveness of current policy measures and actions in the competition and consumer field, particularly in such an important area for consumers as the food sector. We need to be satisfied that these measures are delivering markets that work for consumers and that consumers are being empowered to be effective participants in the market process. Actions such as the current price awareness campaign of the Director of Consumer Affairs and the ongoing competition enforcement work of the Competition Authority are very relevant to this. The report also noted the importance of pressing ahead with the wider national competitiveness agenda on the lines set out in the two recent reports of the National Competitiveness Council. The Government is committed to enhancing Ireland's competitiveness status and an essential part of this is to provide a business environment with low inflation.

Question No. 152 answered with Question No. 96.