Vol. 397 No. 4
1 Mr. S. Barrett asked the Minister for Industry and Commerce if he sees a role for the Consumers' Association of Ireland to act as a watchdog for his Department, particularly in the area of price reduction resulting from exchange rate fluctuations and lower VAT charges; and, if so, if he will allocate adequate resources to this association to enable them to carry out their work in this and other important areas to the benefit of the consumer.
As I indicated in reply to Question No. 18 on 15 February 1990, the Director of Consumer Affairs and Fair Trade has at my request:
already undertaken a survey of certain grocery prices to determine whether the favourable movement in pound-sterling exchange rate was reflected in lower retail prices; and
put arrangements in place to monitor price movements consequent upon the recent reduction from 25 per cent to 23 per cent in the standard rate of VAT.
In recognition of its work in the consumer area, I recently provided direct Exchequer financial assistance to the Consumers Association of Ireland from my Department's Vote. This is the first such allocation for over 20 years.
Moreover, as I pointed out in reply to Question No. 25, on 5 December 1989, my colleague, the Minister for Health, provided State funding both in 1988 and 1989, which has assisted in the procurement by the association of substantial financial assistance from the EC Commission.
Would the Minister agree that the sum of £1,000 to the consumers' association is an insult in view of the type of work they are doing and that the money from the Department of Health, to which the Minister referred, goes towards the publication of their regular magazine which is very informative? In view of the recent annual report by the Director of Consumer Affairs in which he clearly indicated that due to lack of resources in his office he is unable to do all the things he has been asked to do, is it not time to recognise that one of the best ways of dealing with the passing on of price reductions would be to involve the consumers' association in a watchdog capacity? In order to do this they need reasonable funding from the Minister's Department.
I do not regard the provision of £1,000 from my Department as an insult. I am the first Minister for Industry and Commerce in more than 20 years to give them anything. As a result of the assistance which is now being given to them, they will be able to get very substantial funds from the European Commission. They received £92,000 from the European Commission in the past two years as a direct result of what the Minister for Health was in a position to give them, and there is no reason why they should not get the same or more this year.
Has the Minister any plans to involve the consumers' association directly with his Department in carrying out a watchdog role, partly on a voluntary basis but giving them recognition?
It is a matter I would not altogether rule out, but recent experience of some of their surveys was such that I would have to insist that they would carry out the surveys more accurately if they were to operate with the Department.
If the Minister gave them the resources they would be able to do it.
There is a problem in trying to provide resources. There are several questions about it today relating to the Director of Consumer Affairs. I would have to take account of his complaints as well.
Would the Department enter into discussions with the associations?
The Department are frequently in discussion with this association.
