Dáil Éireann díospóireacht -
Tuesday, 13 Jun 2000

Vol. 521 No. 1

Written Answers. - Price Increases.

Ruairí Quinn

Ceist:

42 Mr. Quinn asked the Tánaiste and Minister for Enterprise, Trade and Employment the additional measures she will take to protect consumers against the price increases referred to in the statement of the Minister of State, issued on 16 May 2000; and if she will make a statement on the matter. [16515/00]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. T. Kitt)

I am satisfied the policy followed by this Government, and by all Governments since price controls were abandoned in the 1980s – that prices should be set by competition in the marketplace – continues to provide the best means of putting downward pressure on prices and ensuring value for money for consumers.

The Competition Authority is charged with fostering competition in all sectors of the economy and combating anti-competitive practices. The Tánaiste recently approved five additional posts for the authority – two economists and three lawyers – which will increase the authority's professional staffing level by approximately 70%. This demonstrates the Government's commitment to ensuring that competition law is vigorously enforced and that competition operates to the benefit of consumers.

Transparency in pricing is vital if consumers are to derive the full benefits of competition. There is extensive legislation on price displays and, last year, I made a further order requiring that drink prices be displayed immediately outside or immediately inside the entrances to public houses. As a result of this order, consumers are now given fair warning of the prices charged before they enter a premises so that they can take their custom elsewhere if they believe those prices to be unreasonably high. I recently announced my intention to further extend consumer protection in relation to the advertising of airfares following complaints that many such advertisements do not adequately inform consumers as to the full cost of the fares advertised or their availability.

The Irish Congress of Trade Unions recently called for an investigation into prices in the domestic services sector. I am very concerned about reports of excessive increases in certain prices in this sector and I am currently discussing with the Tánaiste the best means of addressing this problem.

As I emphasised in my statement of 16 May, consumer vigilance is vital to any strategy to combat unwarranted price increases and I would strongly urge consumers to be alert to price movements, query them with the retailers concerned and take their custom elsewhere if they believe that increases are not justified.