asked the Minister for Industry and Commerce if his attention has been drawn to the call made by the General Secretary of the ICTU, Mr. Peter Cassells, for the re-establishment of a Prices Commission; if, in view of this call, the number of recent price increases and the evidence that savings arising from currency fluctuations are now being passed on to the Irish consumer, he will indicate the steps he intends to take to control prices; and if he will make a statement on the matter.
Written Answers. - Prices Control.
34.
As the Deputy will recall, the National Prices Commission was disbanded in 1986 in order to encourage price competition and to promote greater price awareness among consumers. This action was not taken in isolation. It was associated with measures designed to strengthen the regulation of competition in the market. An extensive press release was issued on 17 January 1986 on behalf of the Minister for Industry, Trade, Commerce and Tourism detailing these measures. Competition legislation was subsequently strengthened with the enactment of the 1987 Restrictive Practices (Amendment) Act, which came into effect in January 1988.
I have no plans for the re-establishment of the National Prices Commission. The reintroduction of detailed price control is something I would wish to avoid, as I consider it tended to discourage competition and served to establish what were often minimum rather than maximum prices. All of the ministerial powers under the Prices Acts continue in being and I can use these powers should I consider that any particular situation warrants such action.
However, the emphasis of the Government is to further strengthen competition legislation. I intend to bring new legislation before this House as a priority. It will be designed to ensure that the forces of competition are not in any way hindered by restrictive or anti-competitive practices in the market. This legislation will significantly alter the basic approach of our competition law. The Fair Trade Commission are currently completing a study in this regard which will provide a significant input to the formulation of this new legislation.
The House will be aware that I have been taking action to ensure that Irish consumers benefit from favourable movements in the Irish pound sterling exchange rate. I would drawn the attention of Deputies to a press release, issued on my behalf on 24 November, 1989, which indicated that I have been informed of a range of price reductions due to favourable exchange rate movements. The director of Consumer Affairs and Fair Trade is carrying out an investigation, at my request, which will enable me to assess whether these reductions are adequate. I expect the report of this investigation shortly.