Consumers get a raw deal, prices report concludes

Consumers are not getting a fair deal from pubs, banks, doctors, dentists, restaurants and many other businesses, according to an unpublished study carried out for the Government.

The report of the Consumer Strategy Group - which commissioned the most extensive research into consumer issues carried out here to date - concludes that high prices for many goods and services cannot be explained by the high costs of doing business.

"While the term 'rip-off' Ireland could be regarded as emotive language, our analysis of prices in Ireland leads us to conclude that Irish consumers are not getting a fair deal," concludes the group.

The report, commissioned by the Tánaiste in March 2004, was finalised several weeks ago, but has not been published.

It makes a number of controversial recommendations aimed at fostering a more powerful consumer lobby, which it believes is the best way of countering profiteering. They include revoking the Groceries Order, which bans below-cost selling.

The report argues that this works against consumers and that retailers may be pocketing significant discounts obtained from suppliers that could be passed on to consumers.

Previous moves to end the ban have been successfully opposed by small- and medium-sized retailers who fear predatory pricing by large supermarket chains. The Government is expected to propose a three-month consultation period before making a decision.

The group also wants to see an end to the State's dual role as the biggest provider of public transport and the regulator of transport.

The licensing laws should be further liberalised to bring down the price of alcoholic and non-alcoholic drink, says the group, which also wants consumers given a say in the planning process.

It believes that doctors should be given incentives to prescribe generic alternatives to prescription drugs, while pharmacists should be allowed to substitute cheaper generic products when a branded one is prescribed.

A key recommendation is a national consumer agency to take over the Office of the Director of Consumer Affairs.

It will be an advocate for consumers as well as being responsible for enforcing legislation and promoting awareness of consumer rights. The budget for the new organisation is about €8.5 million and it will have a staff of over 80.

The Department of Finance has queried the creation of the new body on cost grounds, according to informed sources.

The report is not expected to be published until next month. The Government is expected to approve the new agency while postponing a decision on the Groceries Order and agreeing to look at the issue of generic drugs.