Vol. 412 No. 7
2 Mr. Hogan asked the Minister for Industry and Commerce if, in view of the reported price increase in the price of a pint of stout, he will consider introducing price controls on drink between now and Christmas; and, his views on whether the increase in price is appropriate.
As the House will be aware, the National Prices Commission were disbanded in 1986 and detailed price control procedures generally were ceased. This was done by the then Government to encourage price competition and to promote greater price awareness among consumers. The emphasis of this Government is to further strengthen competition legislation and to that end a new Competition Act was brought into force by my order on 1 October 1991.
I have no plans to reintroduce detailed price control in respect of alcoholic drink, as I believe that it discourages competition and indeed fuels an inflation mentality.
In the absence of price control, there is no onus on drink manufacturers or publicans to notify me of any price adjustments. Consequently, I have no official information which might allow me to meaningfully comment on the appropriateness of any drink price increases. Notwithstanding that, some of the reported possible price increases seem to be quite excessive. Publicans and others in the drink trade should bear in mind that by our historical standards we have an abnormally low rate of inflation in this country and wage increments are currently extremely low.
Is the Minister aware that there is a huge variation in the price of a pint of Guinness in country areas as compared with Dublin areas? There is also a huge variation in prices in the Dublin market, ranging from £1.65 to £1.90 per pint? I am informed that in some upmarket pubs, which I do not frequent very often, the price of a glass of Guiness is £1.10. In view of the fact that the Minister has a free market mentality in trying to promote competition, is he aware of the powers under the Restrictive Practices (Intoxicating Liquor and Beverages) Act, 1965, which have been revoked? Would the Minister consider reintroducing this order in view of the wide variation in prices in the Dublin market and the inherent insistence by licensed vintners and the trade generally to increase prices at times such as Christmas when there is high demand?
I have obviously considered the question of reintroducing price control and I have taken into account the views of different organisations and people. The two most relevant offices in this regard are the Director of Consumer Affairs and Fair Trade and the Consumers Association of Ireland, both of whom recommend quite strongly against it. I am aware that there is a huge variation in prices of intoxicating liquor throughout the country, but that is not necessarily a bad thing. I hope the Deputy is not suggesting that all prices should be the same at the upper end of the scale. People should exercise choice more frequently than they do in terms of where they go. I do not believe that the reintroduction of price control would be effective but what I could do — I have told publicans' organisations that I will do so if I see evidence of abuse — is reintroduce a standstill order along the lines of that made in 1988. That would be bureaucratically a little difficult and it would create a great many problems for publicans. Therefore they would be well advised to try to keep their prices competitive.
All I can conclude is that the Minister has not much regard for the pint drinker, particularly the Guinness drinker. The Director of Consumer Affairs and Fair Trade, as the Minister has pointed out, has no powers in respect of collusion on prices but he has powers in respect of price display. Would the Minister inquire as to the price of a pint in any licensed premises before he buys it? The normal procedure is that the consumer would ask for a pint before asking the price and they would pay out whatever it cost. In an ideal world people should shop around but people who are thirsty will not do that, particularly at Christmas time.
It is not like buying a car.
If the Deputy feels that he has paid too much for his pint in a certain premises on a certain night, the following night he should go to an alternative premises where he will get an equally good pint for substantially less money.
Would the Minister apply that to politics?
Question No. 3 has been withdrawn. We will now deal with No. 4.
