Vol. 557 No. 1
149 Mr. O'Connor asked the Tánaiste and Minister for Enterprise, Trade and Employment the reasons for the price increases which have arisen due to the changeover to the euro; and if she will reintroduce the prices commission in order to monitor these increases. [21493/02]
Last February I asked Forfás to report on consumer price inflation in the euro changeover period and comparative prices in the euro zone. That report was published in June and is accessible via the Forfás website at www.forfas.ie.
It found that the changeover to the euro had not in general been used as a pretext for the introduction of excessive price increases. It did, however, identify unusual levels of price increases in a number of particular areas. These included doctors, dentists and opticians' fees, pharmaceutical products, alcoholic drinks in licensed premises, food prices in restaurants and cafes and housing and house maintenance costs.
Increased competition is the best way of reducing prices and ensuring that consumers get value for money. This is why I have taken steps to strengthen the powers of the Competition Authority to investigate price fixing and other anti-competitive practices and why I am committed to removing unwarranted restrictions on competition in all sectors of the economy.
In order for the full benefits of competition to be realised by consumers, they must be given sufficient information to enable them to compare different prices and changes and, where necessary, they must be assertive in seeking alternative retail outlets which provide better choice and value. In this vein, I propose to introduce new price display regulations that will clarify and reinforce the obligations on retailers and other traders to provide legible and transparent information on prices to consumers.
I am absolutely opposed to the reintroduction of price control. It is a discredited and ineffective means of reducing prices. When it was last used as a policy mechanism in the 1980s, maximum prices very quickly became minimum prices, inflation rates were close to 20% and consumers were the real losers.
