Tanaiste Wants Consumers To Get A Fair Deal From Retailers

Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan, T.D., reaffirmed her determination to ensure that Irish consumers get a fair deal on price, on choice and on quality in their weekly shopping basket last week.

"Irish consumers have suffered significant increases in the price of a range of essential goods over the past year, most notably in their weekly grocery shopping.

While global factors have played a significant element in this price rise, we are determined in Government to ensure that Irish consumers are getting a fair deal at home", said Ms. Coughlan.

The Tániaste was speaking at the Dublin offices of the National Consumer Agency where she was seeking an update on their work in the ten weeks since she tasked them with raising awareness, highlighting the options available to consumers and, as a result, encouraging increased competition between retailers.

She also reviewed the outcome of the NCA's most recent Grocery Price Comparison Survey and discussed the NCA's work plan on the issue for the coming months.

"We have seen progress in recent weeks. Debate on prices, on choice and on quality has raised awareness.

"Consumers are starting to 'switch-on' to the benefits of shopping around and splitting their shopping basket between different retailers.

"This change in consumer behaviour is starting to affect enhanced competition between retailers. All of this is welcome progress, but it is clear that we still have some way to go."

The Tánaiste noted that the exercise by informed consumers of their purchasing power remained the key tool in encouraging retail competition in a free market.

She said that the primary roles of Government are to arm consumers with all the necessary facts and figures to make an informed choice and to ensure that there is effective competition at all levels of the supply chain.

While the Tánaiste welcomed recent price offers by some of Ireland's major multiple retailers following their meeting with her in June, she said that given that the overwhelming majority of Irish consumers now do their weekly shopping in one or other of their stores, the level of competition between them for each Irish euro remains too low, particularly on like for like and branded products: "Price competition should not necessarily result in the consumer having to compromise on quality", she said.

Ms. Coughlan also said that, in addition, multiple retailers also have a duty to their customers to explain why such a large price differential remains for the same basket of goods between the two jurisdictions on the island.

"While retailers have said that the cost of doing business in the Republic is greater and that this accounts for the price differential, given the appreciation of the euro against sterling over the past year, I have asked the national policy and advisory board, Forfás, to assess the relative cost of doing business in both jurisdictions. They are due to report to me in September and I await those findings with interest."

The Tánaiste concluded, saying: "Increased grocery prices directly impact on the household budget of every family in the country and those that are less well off are feeling the effects most. While our influence on global factors may be limited, we are determined in Government to ensure that Irish consumers get a fair deal and do not suffer any unjustifiable price increases."