Dáil Éireann Debate, Tuesday - 14 June 2022
195. Deputy Ged Nash asked the Tánaiste and Minister for Enterprise, Trade and Employment if he is considering taking steps to invoke sections 61 to 63 of the Consumer Protection Act 2007 with a view to introducing maximum price orders on certain goods and products in the context of the current cost-of-living crisis; and if he will make a statement on the matter. [30940/22]
View answerSections 61 and 62 of the Consumer Protection Act 2007, provide powers for the Government to declare a state of emergency in relation to the supply of a product and to set a maximum price for the sale of that product. Section 63 provides that a trader who contravenes an order made under section 62 commits an offence. These provisions have not been availed of since their enactment.
In general, there are no ceilings set for prices in Ireland and, with one exception (minimum unit pricing for alcohol), there is no legislation explicitly stating what the maximum or the minimum price for any product or service should be. Such an approach aims to promote competition amongst retailers and service providers.
Some prices, especially for services/utilities, are regulated, whereby the service provider or retailer must apply to the industry regulator for approval for any price increase. For example, suppliers of electricity, telecommunications and postal services may not charge more than the approved prices. Suppliers of financial services do not apply for approval for price changes but must inform the Central Bank of Ireland about any such changes.
Price controls are a blunt instrument and could have serious economic impacts for individual traders and Ireland as a whole. For goods or services that are imported or where domestic production has a high import content, the effect would be reduced supply. In other cases, the risk lies in the medium-term effects on competition in the marketplace and supply chains.
Invoking these specific provisions of the Consumer Protection Act 2007 would require a decision by Government and it is not the Government’s intention to do so as it has already introduced a number of measures to address the increase in the cost of living and will examine any further measures deemed necessary in the context of the Budget in October.
