Rabbitte to tackle cost of consumer rows across EU

A SYSTEM to reduce the costs involved in settling EU cross-border consumer disputes is among the priorities of Mr Pat Rabbitte, Minister of State with responsibility for consumer affairs, during the EU presidency.

Mr Rabbitte addressed the MEPs' consumer group and the European Parliament Committees on Legal Affairs/Citizens Rights and on Energy, Research and Technology in Brussels yesterday.

He outlined a system of cross-border settlement on which he hopes to win agreement on a pilot basis during the Irish presidency. For a typical consumer dispute, he said, the cost of its legal resolution was out of proportion to the amount of money at stake.

Independent research had shown the average cost of in-court settlement of a cross-border EU dispute over an amount equal to £1,600, is £2,000 for the plaintiff. The average duration of such a case is two years. "A settlement system which, at modest cost, can deal quickly with consumer grievances is essential".

EU-wide harmonised forms, such as the €111 for sickness insurance, showed the way towards simplified procedures.

On research priorities during the Irish presidency, Mr Rabbitte mentioned small and medium-sized enterprises, where, he said, development could be enhanced through innovation and greater opportunities to participate in EU schemes.