CAI plans to survey euro cost of basics

CONSUMERS: The Consumers Association of Ireland (CAI) plans to expand a survey of prices undertaken after the introduction of euro notes and coins because of widespread unease about the issue.

Preliminary findings of a CAI survey found evidence of price hikes in a number of sectors, particularly pubs, restaurants and doctors.

"Because there's such a massive level of unease and concern, we are going to do a full shopping basket check across the country," the CAI's chief executive, Mr Dermot Jewell, said yesterday.

He said the association's phone lines had been jammed all day with consumers calling to make queries and complaints.

The extended survey will cover 40 basic items, such as bread, butter and milk, and track price changes since the last survey was carried out in December 2000.

Mr Jewell said, while some outlets had not raised prices following the introduction of the euro, prices had been increased in the months running up to it. He called on consumers to contact the association and send proof of increases in the cost of goods and services.

The Taoiseach, Mr Ahern, disputed the CAI's claim that the euro had forced up prices.

"That is not the information the parties concerned have," he said. "And we are watching the situation every day. Any complaints that have been made since the start of the year have been checked. Restaurants and pubs have been watched and checked.

"The information is that, while there have been price increases in some areas, there have been reasons for them. But overall, the price increases have not been linked to the euro changeover."

The Director of Consumer Affairs, Ms Carmel Foley, said she would like to see the completed CAI report, and was also waiting for inflation figures for December and January, before jumping to conclusions. Evidence to date suggested the changeover had been done "with a high degree of integrity and honesty", she said.

The Minister for Consumer Affairs, Mr Tom Kitt, called on the CAI to publish its survey and "name the retailers and other outlets that they allege have implemented these unjustified price increases".

He rejected CAI calls for a price freeze as unworkable and of no benefit. "A price freeze is a blunt instrument and cannot be sustained indefinitely," Mr Kitt said.

"A price freeze would only bring us back to the days of generalised price control, which we abandoned in the 1980s because it was unworkable and in many cases acted to the detriment of consumers - and which no Government since has even contemplated reinstating."