Dáil Éireann díospóireacht -
Thursday, 5 Jul 2001

Vol. 540 No. 3

Written Answers. - Euro Changeover.

John Bruton

Ceist:

44 Mr. J. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the possibility that the introduction of the euro could be availed of by companies to introduce surreptitious price increases; and if discussions have taken place with business and retailing interests to ensure there is transparency in this matter. [20598/01]

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

The most effective way of ensuring the changeover to the euro does not lead to an increase in prices is to empower consumers to be vigilant in monitoring prices. This is the objective of dual display of prices. Dual display helps consumers to familiarise themselves with the new currency and enables them to build up a scale of values in euros so that they can be confident in making purchases in the new currency. The key initiative to encourage dual display of prices has been the development of the national code on euro changeover.

The Director of Consumer Affairs has contacted over 200 trade associations, inviting them to sign up to the national code on behalf of their members, or to draw up a sectoral code of their own and seek her approval for it. To date, a total of 11 trade associations and 17 individual companies have signed up to the code. The director's office is in the process of responding to applications from close on 100 further potential subscribers to the code by individual companies. The director has approved four sectoral codes submitted to her by IBEC-EAN – subscribers include all of the major supermarkets and retail chains – the Irish Petroleum Industry Association, Clé and Booksellers Association, and the Irish Insurance Federation. A further two proposed sectoral codes are currently at an advanced stage of examination by the director's office.

Retailers who subscribe to either the national code or to sectoral codes of practice on dual display approved by the Director of Consumer Affairs commit to displaying prices in both Irish pounds and euros at a minimum from 1 October 2001 to 9 March 2002. They also undertake to provide information in-store to help customers understand the conversion to euros and to facilitate price comparison. Subscribers to national and sectoral codes will be entitled to display a special logo devised by the Director of Consumer Affairs as evidence of a commitment to implement the changeover fairly. The logo will contain details of who consumers should contact with complaints of non-compliance. Should the matter not be resolved at this level, the complaint may also be referred to the Director of Consumer Affairs.

The level of subscriptions to both the national and sectoral codes is already encouraging and is anticipated to increase steadily as 1 October approaches. The Director of Consumer Affairs has also planned the timing of a promotional campaign urging consumers to shop where they see the logo to coincide with the commencement of the minimum period of application of the codes. While adherence to the codes of practice is voluntary, all businesses should welcome the opportunity to demonstrate to consumers, by subscribing to the codes and advertising the fact that they have done so, that they are committed to carrying out the changeover to the euro fairly.