Retailers Must Explain Price Differences - Tánaiste

Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan T.D., speaking on Tuesday at the annual "Checkout" Conference in the Four Seasons Hotel, Dublin called on retailers to explain to consumers why there remains such significant differentials in the real price of many goods between the North and South.

The Tánaiste said: "In response to claims by retailers that one of the main reasons for the higher prices paid by consumers in Ireland was the cost of doing business in Ireland, I requested Forfás to carry out an analysis of the relative cost of doing business in a number of locations at home, in Northern Ireland and in Great Britain.

"The essence of Forfás' findings was that while the cost of doing business is somewhat higher in this jurisdiction than it is in the north, this additional operating cost should only account for a difference of 5 - 6 % in the price of goods between North and South.

"While clearly the cost environment in the South is having some impact on retail prices, it does not explain the reality of the magnitude of the North-South price differentials that continue to exist.

"It is my strong view that retailers have a duty to their customers, and to the economies in which they operate, to explain why there are such price differentials.

"I welcome recent statements by some retailers that they intend to ensure that their future pricing policies will reflect the level of the increase in the Euro's value.

"Unfortunately, a significant number of retailers, including retailers in the grocery sector, have yet to reflect the benefits of the Euro's sustained appreciation in value by way of lower prices to consumers and have failed to give any credible reasons for these price differentials.

"I now call on all those in the retail sector to play their part in ensuring that that as a sector it can continue to be a vibrant part of the national economy, particularly as a significant employer, while also providing value to the Irish consumer," she concluded.