Increased competition would counter rising prices, says Minister

THERE WAS a need for a more competitive retail marketplace in the Republic to deal with rising prices, Minister for Enterprise, Trade and Employment Mary Coughlan said.

“The publication of more regular and more comprehensive price information by the National Consumer Agency, and a willingness by consumers to act on that information, have a key role to play in the development of a more competitive marketplace,” she added.

The Minister was replying to Fine Gael spokesman Leo Varadkar, who said that a National Consumer Agency survey showed that when VAT and excise were excluded, Tesco own brand prices were 17 per cent higher in the Republic than in the North, whereas the difference between branded items was 28 per cent.

Ms Coughlan said that although a government had little power to influence the main causes of recent increases in the price of food and fuel, she had taken action in areas where it could be in a position to exert some influence.

She added that she had met separately with Ibec and leading members of Retail Ireland, and had also written to major individual retailers to express the Government’s concern at the apparent reluctance of the retail sector generally to pass on to consumers the benefit of the euro’s appreciation against sterling.

She had been told, she said, that although the retail price of goods imported from the United Kingdom had lagged behind exchange rate movements, due to factors such as the forward purchase of goods and currency, there had already been reductions in the price of some goods and further reductions were in the pipeline.

Mr Varadkar said that deputies would be aware of widespread consumer anger about the price of goods and the growing fear of those on tight budgets.

“While I am not on a particularly tight budget, I returned from my local Spar outlet the other day having paid almost €100 for a basket of goods which had very little in it,” he added.

“I appreciate the Minister earns €5,000 per week, and probably has her driver to do her shopping, but rising prices are beginning to hurt.”

Ms Coughlan said that she did her own shopping. “If I received €5,000 per week, I would like to see the job I will do, because I do not receive that sum,” she added.

She said that serious issues had arisen in comparative analyses between North and South and she would continue to pursue those vigorously.

As a Border deputy, she wished to ensure that there was a strong retail sector in the Republic.

“It is incumbent on us all to ensure that happens and, therefore, to ensure that people who are involved and working in that sector are assured of sustainable jobs,” she added. “There is a need for a little patriotism in this country.”

Earlier, Fine Gael finance spokesman Richard Bruton said that the Minister would have seen newspaper headlines on “a report about fleecers”.