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Price Increases.

Dáil Éireann Debate, Thursday - 13 May 2004

Thursday, 13 May 2004

Questions (85, 86)

Bernard J. Durkan

Question:

82 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which she or her Department has examined instances in which the consumers or customers are clearly being ripped off through price hikes; the steps she has taken to address the issue; and if she will make a statement on the matter. [14017/04]

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Bernard J. Durkan

Question:

83 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she or her Department has taken to curb price increases which are not in keeping with inflation; and if she will make a statement on the matter. [14018/04]

View answer

Written answers

I propose to take Questions Nos. 82 and 83 together.

The responsibility of Government in the matter of the prices of goods and services generally is mainly limited to ensuring that markets are working properly for the benefit of consumers and of the economy as a whole. Many people in the country share concerns over the price of goods and services and I emphasise that the Government is acutely aware of the difficulties which price increases pose for the average consumer. However, we must note the progress made in bringing inflation below the Government target of 2% which we set last year and I am pleased to further note that the consumer price index for March showed that the inflation rate fell to 1.3%.

Within this context Forfás has produced reports on consumer price inflation in 2002 and 2003. This has complemented the work of the National Competitiveness Council and the Competition Authority, which undertake on a continuous basis investigations into the competitiveness of the Irish economy and the level of competition within it. These investigations highlight the key areas that require attention to enhance Ireland's competitiveness and economic performance.

The Competition Authority is currently involved in investigative work in the insurance, banking and professional services sectors. In regard to professional services, comprehensive studies are being undertaken of eight individual professions, namely medical practitioners, veterinarians, dentists, optometrists, barristers, solicitors, engineers and architects. As the Deputy knows, I have also set up the new consumer strategy group, whose main role is to advise and make recommendations for the development of a national consumer policy strategy. In its performance of this role the group shall be entitled to initiate studies which demonstrate objectively whether or not Irish consumers are getting a fair deal. The group is due to produce a final report to me by the end of 2004.

With regard to other steps taken I must mention the ongoing work of the Office of the Director of Consumer Affairs in undertaking price surveys and bringing the results to the public's attention. I specifically mention the ODCA's late 2003 Price Awareness Pays campaign, which was run on behalf of the anti-inflation group established under the partnership agreement Sustaining Progress. In tandem with and as a follow up to this campaign the ODCA has published the results of price surveys of products such as CDs, petrol, car insurance, drinks prices over a rugby weekend, potatoes and over-the-counter medicines. Consumers have their part to play in acting on this type of information and seeking out the most competitive prices available.

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