Consumer comparison: This summer will be remembered for the heat generated on the airwaves as holiday-makers complained to radio shows about the price of everything in Ireland, writes Alison Healy

The fun has gone from comparing the cost of living here with abroad since the euro came in. Now people know just how this State compares - and they don't like it much.

This summer will be remembered for the heat generated across the airwaves as returned holiday-makers complained to radio shows about the price of everything in Ireland. From wedding albums to sun cream, from medicine to cars, Irish consumers seemed to be paying more than their European counterparts.

Last week Philip Boucher Hayes on RTÉ Radio 1 asked listeners to cite their greatest rip-offs. One reported a bill of €92 for tea and scones for four people in a hotel. Another was charged €4.50 for a pint of tap water. A woman was charged €6 for an unsigned Mass card.

The Government agency Forfás found GPs, restaurants and hairdressers had all raised their prices sharply during the euro changeover. Since then, "if anything, things are worse," said Mr Dermot Jewell chief executive of the Consumers' Association.

He cited the planned increases in ESB charges, VHI payments, college charges, CIÉ fares and hospital A&E charges. "Reports have suggested further cutbacks. It will be a very difficult few months for consumers."

The CA has encouraged consumers to shop around but Mr Jewell says many people do not have the time. And there is often little difference in price between the main supermarket chains.

RGDATA, the independent grocers' group rejects claims that grocers are profiteering at the customer's expense. Ms Ailish Forde, its director-general, says our island status increases transport and distribution costs.

Larger markets benefit from buying high volumes of stock but the Republic does not have that advantage, she says. Changes in the value of the euro against sterling also affect this State more because of its business with Britain.

The Tánaiste, Ms Harney, has taken charge of the consumer policy brief and has promised an action programme to address the issues raised in the Forfás report.

Mr Jewell expects investigations by the Competition Authority into professions such as law and insurance will eventually make a difference.

Many complaints about overpricing concern eating out, but restaurant owners are victims too, according to Mr Henry O'Neill of the Restaurant Association of Ireland (RAI). He says this is one of the worst years ever, due to dearer labour, insurance and raw material costs.

"Labour costs in two years have risen from 25 per cent of turnover to 40 per cent," he said. "The average increase in insurance last year was 175 per cent, compared with the previous year." Restaurants in this State pay €2.45 duty on every bottle of wine, plus 21 per cent VAT. In contrast, Spanish restaurateurs pay no duty and just 7 per cent VAT. Italian restaurateurs pay 9 per cent VAT on wine.

If the Government wanted to do one thing to instantly improve the situation, they could reduce the tax levels, including excise duty, VAT and corporation tax, he says. The RAI also wants an investigation of the insurance industry by the Oireachtas.

More expensive utilities and groceries hit low-income families more than others, as a greater proportion of their income goes on essential goods, said Mr John Mark McCafferty, St Vincent de Paul's social policy adviser.

"June and July were an incredible watershed for price rises. If people on substantial incomes are still reeling from these, what must it be like for people who are already struggling to make ends meet?"

St Vincent de Paul believes social welfare payments should be benchmarked in some way. They suggest linking the payments with the average industrial wage so that social welfare recipients would always receive, say, 30 per cent of gross average industrial earnings.

Mr Patrick Coleman, who has lived in the US for 30 years, usually comes to Ireland two to three times a year but now plans to cut back on that. "It's very frustrating going over and feeling that you're being ripped off," he says. The last straw for him was recently being charged €850 to rent a car for 11 days.

" This year it was the most expensive ever," he said. "The B&Bs are going up a lot, I've noticed also." Mr Coleman lives in Rockville near Washington DC, "one of the most affluent and expensive areas of the country. But Dublin is more expensive."

Mr Ed Leddy who lives in Tennessee said he could not afford to retire to Ireland as the cost of living is 60 to 100 per cent more expensive here. He blames Government taxes. "I love the country but I believe the taxation has put the country out of reach for many visitors."