Vol. 574 No. 3
111 Mr. O'Shea asked the Tánaiste and Minister for Enterprise, Trade and Employment her proposals to control excessive prices for alcohol, soft drinks and food being charged by some pubs, clubs and restaurants (details supplied); and if she will make a statement on the matter. [26955/03]
Price control was a feature of policy in the 1980s when inflation rates reached over 20%. It is a policy mechanism which was shown to have failed, with the maximum prices for products controlled tending to become the minimum. I have no plans to reintroduce price controls on any products.
I believe that increased competition is the best way of reducing prices and ensuring that consumers get value for money. However, in order for competition to be effective, consumers must also be given sufficient information to enable them to compare prices. Accordingly, the Retail Price (Beverages in Licensed Premises) Display Order, 1991 requires that the price of both alcoholic and soft drinks be displayed immediately outside or immediately inside each entrance to a licensed premises. The purpose of the order is to ensure that consumers are aware of the prices charged before they enter a licensed premises. The order is enforced by the Director of Consumer Affairs.
In addition, as part of the Government's anti-inflationary initiative, an information campaign was launched on 2 November. This campaign, which is being run by the Office of the Director of Consumer Affairs, is being carried out on behalf of the group set up under the Partnership Agreement 2003-2005 – Sustaining Progress. It recognises that markets work better with fuller information and that unfortunately price awareness decreased over recent years during the times of the Celtic tiger.
The purpose of the campaign is to make consumers think about prices, promote price comparison and encourage them to have a greater regard about pricing when choosing goods or services. The campaign will run for four weeks in the media and over the national and local radio stations and on TV. The theme is "price awareness pays". Consumers are being encouraged to look and see the prices they pay for everyday goods and services and if they are not happy to question them.
