asked the Minister for Industry, Commerce and Tourism if his attention has been drawn to the cost of electrical goods in Ireland which are up to 100 per cent dearer in the Republic than in the Six Counties, including those originally manufactured in the Republic, and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Electrical Goods Costs.
31.
I am aware that because of different rates of VAT and currency differentials the price of electrical goods of which there is a great variety is greater here than in Northern Ireland. I am not, however, aware that the difference is of the order mentioned in the question. If the Deputy provides me with relevant details I will arrange to have the matter investigated.
Is the Minister aware that electrical goods can be purchased in Northern Ireland at half or one-third of the price they are sold for in the Republic? Is he aware that such items as television sets, fridges, cookers and washing machines which are manufactured in the Republic are being sold at half or one-third of the price in Northern Ireland? Surely the Minister, and his Department, should be in a position to get the information sought and not ask that it be supplied by somebody else?
The Department and the National Prices Commission investigated this matter. They say that the cost of electrical goods generally in Northern Ireland is somewhat lower than it is in the Republic but there is no question of a differential of 100 per cent. If the Deputy suggests there is such a differential I invite him to give details. We will investigate them in respect of whatever product he says there is such a differential.
It was made public on a radio programme recently.
Did the Minister use the word "considerable" or "substantial" in relation to the difference in price?
I do not see the words "considerable" or "substantial".
Does the Minister agree that that substantial difference will be even greater after May when VAT is increased as a result of the budget?
It will for some commodities that are covered by the increased VAT rate. Items going from 20 per cent to 25 per cent will be 5 per cent dearer.
All electrical goods are included.
Would the Minister not agree that unless somebody is making a big rake off—and that includes the State—goods manufactured here should not be 100 per cent dearer in the State in which they are made than they are in a neighbouring State? Television sets are £450 here as opposed to £200 in Northern Ireland?
The position is that television sets in the Republic are subject to an excise duty which is quite hefty whereas television sets in Northern Ireland are free of excise duty.
In view of the fact that we are both members of the EEC why is it not possible to straighten out those matters? There is no point in talking about free movement of men, money and material when one State is allowed to sell goods at twice as much as another State.
The question the Deputy is now raising is a very major one because harmonisation of fiscal measures throughout the Community is one that will take many years to bring about and it is not in our interests in certain respects to look for such harmonisation at present.
(Cavan-Monaghan): Is the Minister aware that due to the differential in prices of commodities mentioned that there is considerable smuggling into this part of the country and that as a result businesses are under pressure and unemployment may follow?
I would be surprised if there was not some smuggling but that has been traditional here since Partition started. It varies depending on the prices of different commodities at different times.
The remaining questions will appear on tomorrow's Order Paper.
There are two further questions that could be dealt with today. One of them deals with the question of motor tyres.
That is a question that has not been reached. The remaining questions will appear on tomorrow's Order Paper.