Dáil Éireann díospóireacht -
Wednesday, 31 Mar 1993

Vol. 428 No. 6

Written Answers. - Price Reductions on Goods.

Liz McManus

Ceist:

106 Ms McManus asked the Minister for Enterprise and Employment if his attention has been drawn to the complaints that retailers failed to pass on in full the benefit of price reductions on goods imported from the UK arising from the decline in the value of sterling; the procedures, if any, which are in place to monitor price levels on such goods and to ensure that excessive increases are not put in place arising from devaluation; the number of complaints received by his Department; the action, if any, taken against any particular retailer; and if he will make a statement on the matter.

Minister for Enterprise and Employment (Mr. Quinn)

The significant developments in international currency exchange markets in recent times have had a major impact on many aspects of our economy, including prices.

Since the dismantling of statutory price controls generally in 1986, the general thrust of policy by successive Governments has been to refrain from direct interference in business and to avoid employing any controls, measures and bureaucratic structures that would impose unnecessary burdens on business or consume scarce public funds. Currently there are no statutory price controls in force. The emphasis is on the development of competition in every sector of enterprise and encouraging further consumer awareness of prices.

The Competition Act, 1991, sets down the legal framework which is necessary to protect the market and to promote the principles of free and fair competition on which the market operates. It is vital for economic development and for keener prices for the consumer. I would advise consumers to vigorously enforce their rights in this crucial area.

With the onset of currency turbulence last autumn, and the weakening of the pound sterling, there were many indications of price reductions for imported goods and much evidence of strong marketing campaigns built on falling costs for importers, distributors and retailers. The most recent figures reported for the Consumer Price Index here are particularly encouraging in this respect. I have been concerned to see that importers, distributors and retailers are encouraged by market pressures to convey to consumers the benefits of the greater purchasing power of the Irish currency and continue to be concerned that any upward price movements following the recent re-alignment within the EMS and renewed strengthening of sterling should be appropriate. I am asking the Director of Consumer Affairs to continue to monitor developments.

As regards any effects on inflation here of the recent realignment of our currency within the EMS, I would expect inflation for 1993 to be under 3 per cent. Finally, I would stress again that consumers should be prepared to vigorously exercise their right of choice by being sensitive to the range of prices on offer and purchase accordingly. Sellers in a competitive market respond to buying patterns.