British retailers warned on prices

THE GOVERNMENT yesterday signalled that it is willing to harden its stance to ensure that consumers are protected from paying…

THE GOVERNMENT yesterday signalled that it is willing to harden its stance to ensure that consumers are protected from paying higher prices in the Irish outlets of British multiple retailers.

The Cabinet held a detailed discussion on price inflation yesterday, at which Tánaiste Mary Coughlan briefed Ministers and outlined the action that she intends to take to remedy the price differential.

Ms Coughlan, the Minister for Enterprise and Employment, is to meet senior executives of employers' group Ibec this morning. It was also disclosed yesterday that she intends to write to the heads of the retail outlets in Ireland and in Britain to ascertain what plans they have to deal with the situation.

The chief executive of the National Consumer Agency (NCA) Ann Fitzgerald will also attend a meeting of the Oireachtas all-party committee on small business and enterprise today. She is expected to outline how the agency will respond to the situation where there is one price in UK branches of multinational retailers and higher prices in Irish branches.

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Taoiseach Brian Cowen also gave an undertaking yesterday that if the proposed measures did not have the desired effect, the "Government will look at every lever available to it to ensure consumers are protected in this jurisdiction and that they get the same value for money as people can expect elsewhere."

The Government spokesman confirmed that this was now a priority issue, adding the NCA would also be putting a great focus on comparing prices for identical products in the North and South.

Mr Cowen, and the Government, yesterday advised consumers to split their grocery shopping basket between supermarkets if possible. Speaking in the Dáil yesterday, Mr Cowen attributed the increase in the price of diesel to "huge demand in China".

"The price of diesel does not come under the auspices of the National Consumer Agency. It is a question of trying to do what we can in that respect," he said.

Labour leader Eamon Gilmore, who first raised the matter in the Dáil last week, said that it would require more than just pleading with the British retailers concerned. "The change in the relationship between the euro and sterling has been in play for some time and the value has not been passed on to the Irish consumer. With each passing day, consumers are continuing to be ripped off."

Harry McGee

Harry McGee

Harry McGee is a Political Correspondent with The Irish Times