Dáil Éireann Debate, Tuesday - 21 November 2017
110. Deputy Catherine Murphy asked the Tánaiste and Minister for Business, Enterprise and Innovation further to Parliamentary Question No. 556 of 22 November 2016, if she has had updates from or engagement with the groups the former Minister for Business, Enterprise and Innovation addressed at the retail consultation regarding a differential in euro and sterling in the context of retail sales here; and if she will make a statement on the matter. [48730/17]
View answerI wish to underline the Government's commitment to ensuring that the benefits of a stronger Euro are passed on to Irish consumers. My Department has engaged with the retail sector on this issue through the Retail Consultation Forum, which I now Chair. Specifically, it was raised and discussed at a meeting of the Retail Consultation Forum on 21 November 2016.
In response, retailers explained that some of the differentials between prices quoted in Euro and Sterling may be attributed to such factors as the exchange rates at the time of the purchases by the retailers, the relative costs of doing business between the two jurisdictions, and tax rates.
While it is not my function to set prices for retailers, it is my view that retailers should explain to their customers, and to the economies in which they operate, the reason for price differentials where they exist. Actions by retailers to restore consumers’ confidence that they can get a fair deal will help not only to address issues around the differentials in prices but will also help in assisting businesses to retain trade and, thereby, help to maintain employment.
I also recognise that retailers themselves are concerned about the impact of sterling fluctuations on Irish consumer sentiment. Retail sales figures show that the volume of retail sales is growing at a faster rate than the value of sales growth, which indicates that there continues to be heavy discounting by retailers and promotional activities to drive footfall and sales.
In October this year, Retail Ireland copied my office on their correspondence to Deputy Joan Burton following the Deputy's Parliamentary Question of 11th September on the issue of the fall in the value of sterling, outlining the reasons for any price differentials where they exist and the value that is available in stores across Ireland.
Brexit, and the resulting consequences for both retailers and consumers, will continue to be a focus of the Retail Consultation Forum and was discussed in detail at the most recent meeting of the Forum on Monday 20 November.
