€2.50 charge for tap water claimed

A Dublin man was charged €2

A Dublin man was charged €2.50 for a pint of tap water with a splash of blackcurrant, the Fine Gael leader, Mr Enda Kenny, claimed yesterday.

He said that the information was contained on the Fine Gael website on overcharging, which had been inundated with claims from people all over the State.

Other examples of overcharging, he added, included a cooker costing €3,200, compared to the British price of €1,700.

"A young man was quoted €4,000 in insurance for his van. If he lived in Australia, it would be the equivalent of €90."

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Mr Kenny asked if the Taoiseach, Mr Ahern, had any intention of taking into account the advice from the National Competitiveness Council that the Government should avoid fuelling inflation.

Monday's report, he said, had highlighted the fact that Ireland was now the joint most expensive country in the Euro zone for consumer goods.

"We rank fourth most expensive out of 16 for insurance premiums per capita, and our industrial electricity costs rank third most expensive out of nine countries.

"This will come as no surprise to consumers."

Mr Ahern said he was regularly engaged with the authority and he took account of its views.

"A big part of our inflation over the past number of years has been imported through a weaker euro and higher energy costs.

"We are an open economy and you cannot get away from those particular issues."

He added that he did not accept that people could look for better services and then say there was a cost involved.

"You cannot have it both ways. I just discount that argument, quite frankly."

Earlier, Mr Joe Higgins (Socialist Party, Dublin West) said the victims of "rip-off" were workers and poor people.

He asked the Taoiseach if he was aware that many people suspected there were informal, if not formal, cartels among key service providers to ensure that prices were kept high.

Mr Higgins added that the Tánaiste had suggested people shop around, "as if to say we should all become shopaholics and somehow prices might drop dramatically".

Mr Ahern said he had read a report on the catering area. "Why is it that the south of Spain and some other parts of Europe are cheaper?

"The adult rates are €3.50, while our minimum rate is €7. The answer is simple when they are paid those rates."

Michael O'Regan

Michael O'Regan

Michael O’Regan is a former parliamentary correspondent of The Irish Times