asked the Minister for Industry, Commerce and Tourism if he is aware of the wide divergence in the price of carpets of the same quality; if carpet prices are subject to his approval; and, if not, if he will take the necessary steps to ensure that prices are regulated and controlled.
Ceisteanna—Questions . Oral Answers . - Carpet Prices .
17.
: I am aware that there is a very large range of carpets on sale here and there are wide variations in quality, design and price. However information on the comparative qualities of the different carpets is not available to my Department. Under the price control mechanism the major Irish carpet manufacturers, who are, in fact, selling a significant percentage of their output on the highly competitive export market, are complying with the requirement that their selling prices on the home market are comparable to their selling prices on their export markets.
The margins taken by retail outlets on carpet sales are not subject to statutory price control. The position is that such outlets adopt different marketing strategies involving competitive pricing on the one hand and a range of customer services on the other. This enables the potential customer to decide on which sales approach best meets his individual requirements. I am satisfied that, having regard to the wide number of sales outlets and the intense competition in this field, market forces are operating effectively at the retail level. However, if the Deputy has received any complaints about the prices being charged for carpets I will arrange to have the complaints investigated by the prices inspectorate of my Department.
: Is the Minister aware that, in a recent survey of the price of carpets, carpets manufactured by the same company and of the same quality and brand name showed a difference in price in Galway of £3.50 per square yard and in Cork a difference of £8 a square yard? Does the Minister not regard this as outrageous? Does he not think that purchasers of carpets need some protection?
: All purchasers need protection. For the Deputy's information the prices inspectorate have received very few complaints about overcharging for carpets. They estimate that they only receive one or two in the course of a year. If the Deputy has some complaints my Department would like to look into them. The Irish Goods Council have reported that we import almost 80 per cent of the total market in carpets. That is one reason why the "Buy Irish" effort is needed.
: Would the Minister not agree, in regard to his statement that competition should control prices and that the competition among the different firms is sufficient safeguard, that the normal purchaser is unaware of the different categories of carpets? Would the Minister not agree that it is time that his Department took serious action in this matter?
: There are different designs and different qualities. There are firms who send out people to lay the carpets and in other cases the purchaser just buys the carpet off the rack and takes it home with him. This is a very wide field in which to safeguard the consumer. As I said in my reply, the whole thing is tied in with what the selling price is on the export market. If the Deputy has cases of overcharging I would be glad to have them.
: Surely the Minister will agree that the same quality of carpet and the same design should not show a variation of as much as £8 per square yard between two wholesalers?
: Was the carpet being laid in the home in both cases? Was there a man coming out from the firm to lay the carpet?
: A price was quoted to somebody who asked for the price in three different shops.
: There should not be a difference in similar cases.
: I assume the Minister said that the retail price is not controlled but that the wholesale price is controlled and must be the same as the export price. This is probably what causes the trouble Deputy Belton is talking about.
: Yes.
: As the Minister said, 80 per cent of the carpets are being imported. Is it not ridiculous to have advertisements on television asking people to buy Irish when the same television company go abroad and buy them in Holland when they want carpets for their new building in Montrose, while Irish carpet factories are closing? Is that not a ridiculous situation and would the Minister try to get his Department to do something about it?
: It is the concern of my Department to buy Irish. I will check out the Deputy's question but in my view we should certainly buy Irish.
: Is the Minister aware that recently RTE bought carpets in Holland and said that the quality of carpets here was not good enough for them? You could not beat that for hard neck from a firm who get £60,000 or £70,000 a year from Irish manufacturers to advertise their Irish carpets in a "Buy Irish" campaign. Surely the whole thing is a bad joke.