I propose to take Questions Nos. 37, 125 and 126 together.
I am aware of media reports of consumers shopping north of the Border as a result of price differences between here and Northern Ireland. Retail prices are determined by a variety of factors including supplier and other input costs incurred by the retailer. Prices can also be determined by market forces and will often be a reflection of what the market will bear.
Price comparisons with Northern Ireland will also be dependant on currency fluctuations and a strong euro will have the effect of prices in that jurisdiction appearing significantly cheaper than at times when the exchange rate is less favourable.
The National Competitiveness Council's statement on prices and costs, 2004 which confirmed that many goods and services have become more expensive in Ireland than in many other EU member states. It may be that the publication of this sort of information during the year has made consumers more aware of price differentials. If so, I welcome the fact that Irish consumers are becoming more price sensitive, I welcome the fact that competitive forces are at work in the economy and I welcome cross-border competition. It is good that consumers have this sort of information available to them in order to make these choices.
However, my concern is to ensure that our economy remains competitive not least in terms of value for money for our consumers. That is why the Government earlier this year established the consumer strategy group to advise and make recommendations for the development of a national consumer policy. In the performance of this role the consumer strategy group has carried out a range of activities, including studies that investigate issues of special concern. Price trends with other parts of Europe have been examined and some prices have been the subject of additional investigation, including those of fruit and vegetables, alcoholic beverages, and pharmaceuticals. The group will report to me early in the new year and I plan to give the report prompt attention and consideration as soon as I receive it.
