Vol. 450 No. 7
4 Mrs. O'Rourke asked the Minister for Enterprise and Employment the reason there is such a price difference between British magazines sold in Britain and the same magazines sold in this country; and the steps, if any, he proposes to take to outlaw excessive mark-ups. [5687/95]
I would refer the Deputy to the conclusions of the Competition Authority on notification No. CA1080/92 dealing with Easons and Newspread in their 1993 annual report. This report was placed in the Library of the House on 30 June 1994. I would certainly be concerned if there was an unreasonable price difference between British magazines sold in Britain and the same magazines sold in this State. The Competition Authority, whose report I referred to, considered this issue in 1992-93 in the context of the then currency turmoil and the exchange rate arrangements between distributors. The Authority concluded that there were anti-competitive practices in the agreement notified to them and in the other associated arrangements between the main importers. In the event the agreement notified to the Authority was withdrawn.
In order to provide for more effective enforcement of competition rules to the benefit of consumers I propose to amend competition law in line with the policy agreement for Government. I refer specifically to the proposals to give the Competition Authority powers of enforcement and to enable the courts to impose fines on those found to be engaging in anti-competitive activity. It is my intention to seek to have a Bill in this regard enacted at an early date.
Bearing in mind the Deputy's concern, I have asked the Department to prepare a report on the price comparisons to which she referred. At this stage we are short of detailed information to take the matter further but I hope we will be able to study it to see if there is cause for concern.
I am glad the Minister is taking the matter seriously because it is an ongoing cause of concern. There is a huge mark-up on magazines, with a difference in price between the UK and here of between 50p and £1.50. In 1992 I met the proprietors of Easons and other booksellers who more or less told me not to bother my head about this matter, that prices are fixed well in advance, it is a complicated matter and one should forget about it. We should not have to pay up to £1.50 extra for magazines imported from the UK. I am not talking about newspapers. If I did so the Ceann Comhairle would say it is a separate question. A report is being complied which we await. I am glad the Minister is taking the initiative in this regard. I am convinced that strong anti-competitive activities are practised by groupings in terms of the sale of imported magazines from the UK and it is not fair that this practice be allowed continue.
There is a group of women in the Gallery, the Bishopstown social studies group from the adult education department of UCC, who came especially to hear Question Time today, to see yourself, a Cheann Comhairle, conducting affairs and to see Deputies in action.
The Deputy is very flattering but there should be no reference to people in the public Gallery.
We are the A team.
I do not know whether the ladies from Bishopstown came as a result of my spending many weeks there canvassing some months ago.
They are delighted to see the Minister.
I am sure I had the opportunity to meet at least some of them.
A 21 per cent VAT rate is payable on magazines in Ireland which is not payable in the UK and that accounts for some difference in price. I have however carried out some spot-checking and there seems to be additional mark-up not explained by that factor. Price alone is not the basis for enforcement action; the issue is collusive agreement.
That certainly exists.
I am concerned about the findings of the Competition Authority in respect of the notification that was subsequently withdrawn. It is an issue on which I will take steps to get further information to see whether there is a problem in that regard.
