Vol. 402 No. 7
18 Mr. J. Higgins asked the Minister for Industry and Commerce the number of petrol/diesel/gas filling stations which have been prosecuted for over-charging for fuels; the number of cases currently before the courts; and if he will make a statement on the matter.
I presume that the question arises in the context of a survey in July 1990, which was undertaken by the Director of Consumer Affairs and Fair Trade. The Deputy will be aware that the Director of Consumer Affairs and Fair Trade is a statutory officer who is independent in the performance of his duties.
The director informs me that over 200 petrol and diesel retailers were visited in July by inspectors under his control. So far, the director has referred 41 cases to his solicitors for the commencement of court proceedings in respect of various offences relating to overcharging and display of prices and, in the case of two of those establishments, for obstruction of his inspectors in the performance of their duties. The director expects that these cases will be listed for hearing over the next few months.
I wish to take this opportunity to advise the House that the Director of Consumer Affairs and Fair Trade began a further nationwide survey of petrol prices last week. It is my hope that the results of this latest survey will show a significant improvement in the number of petrol retailers selling petrol and diesel at not more than the statutory maximum price.
Would the Minister agree that the figures he has given of over 200 visits in July and 40 possible convictions seem to confirm the widely held view that there does not seem to be sufficient personnel to monitor and police the outlets; that a minority of retail outlets are ruthlessly exploiting the position as prices begin to fluctuate and that by and large there is a perception that retail outlets are slow to invoke reductions, very quick to impose increases and are ripping off the customer?
In reply to the question just asked by Deputy Higgins on numbers, every part of my Department is short of staff, some disastrously so. This is true of many Departments but it is necessary in the overall public interest that the numbers and costs of the public service——
Not in the public interest.
——be kept down.
However, in the case of the Office of the Director of Consumer Affairs and Fair Trade, as a result of my raising the matter in Government and discussing it with the Minister for Finance, I am glad to say that in the month of August the Department of Finance conveyed sanction for the appointment of seven additional people to the Office. The director is extremely fortunate that he has been the beneficiary of this unusual munificence.
The muscle of the Progressive Democrats in Government.
I would like to say there would be far more prosecutions if there were more staff but one of the things it is worth drawing to the attention of the House is the fact that in the five prosecutions which have been completed before July, before this round of inspections, convictions were obtained in all cases and, with the exception of one, either the Probation Act was applied or derisory fines were imposed. It is a great discouragement to both the director and me that the view taken by many members of the District Court, but not all, is, unfortunately, that blatant overcharging is not a serious matter. I regard the blatant overcharging which is going on widely in the petrol and diesel business as a very serious matter and I hope the President of the District Court can draw the attention of his colleagues in that court to the seriousness of this matter and the damage it does to the economy.
We are five minutes into other business time.
May I ask the Minister if he proposes to review the various orders governing the price and distribution of petrol products and if in the process of reviewing these orders he will take into account the cowboy activities which are taking place in relation to some aspects of the sales distribution of petrol? Will he indicate whether he has any proposals to amend the law to make it less attractive for people to carry on such behaviour and to increase the penalties substantially?
As I announced earlier I have proposals to increase the penalties but, unfortunately, it has to be done by legislation——
We will co-operate.
——and I will not be able to get that done this year. All I can do is increase the maximum penalty. If the courts still see fit to apply the Probation Act, or to impose a derisory fine, we will not unfortunately be very successful. I hope as a result of my appeal here today that proper fines will be imposed in the future in these matters because, as I have found it necessary to say before, there is widespread and flagrant non-observance of the law in regard to petrol and diesel prices.
A final question from Deputy Allen.
In view of the figures released last week by two major oil companies, BP and Shell, where one company quadrupled their profits for the last three months and the other had profits of 70 per cent, what is the Minister doing to deal with the major oil companies? The other people, while I do not condone their actions, are small fry but it is a scandal that a major oil company should quadruple their profits to £1.2 billion for a three month period. Surely this is an area where the Minister could take on these companies.
The Deputy is making a statement. I admitted the Deputy when, perhaps, I should not have done so because we are now into time for other business. The Deputy was admitted on the premise that he would ask a short relevant question but instead of that he is making a long statement.
Considering those figures will the Minister have negotiations with the multinationals?
The multinationals are always seeking negotiations with me to increase their margins. They all tell me they are losing money here and I ask them: "If you are losing money and have been losing it for so many years why is it that you are all still here". The accounts of the tiny Irish subsidiaries of companies such as Exxon, Shell and so on, are produced on the basis that here on the face of it they lose money but, of course the organisation as a whole makes large sums of money elsewhere out of what they sell here. The Irish accounts, while they are accurate for the Irish subsidiary, do not reflect the reality so far as the group or the multinational as a whole is concerned.
