Analysis: The current Government response is inadequate, consumer group believes, reports John McManus.
The Consumer Strategy Group (CSG) has stopped short of confirming the existence of "Rip-off Ireland", but not very far short.
The salient conclusion arrived at by the group in its report that high prices in the Republic cannot be explained by high costs alone. Yes, they accept, wages are higher, rents are higher, electricity is more expensive and a handful of other business costs are out of line with European norms, but that does not explain why we rival Finland as the most expensive place to live in the European Union.
They point out that while we rank highest in the euro zone for many consumer prices, we do not rank highest for many business costs. "The price gap - which is particularly noticeable in the case of internationally branded products - is not easy to justify," according to the report.
"While the term rip-off Ireland could be regarded as emotive language, our analysis of prices in Ireland leads us to conclude that Irish consumers are not getting a fair deal," concludes the body.
Not surprisingly the majority of consumers believe they are being constantly overcharged for goods and services and a large number feel "that they would not get satisfaction if they complained about poor quality or poor value in goods and services", says the chairwoman of the group, Ann Fitzgerald.
The current Government response to the problem is inadequate, the group believes. In her letter to Micheál Martin - the Minister for Enterprise Trade and Employment - that prefaces the report, she says there are significant "gaps in policy and the State institutions that support consumers".
The solution, argues the group, lies in radicalising the consumer in Ireland. This in turn will trigger a virtuous circle in which "well-informed consumers are not only more willing to spend their money, they are also more likely to favour progressive suppliers that offer more choice, better quality, superior service and innovate products and services at fair prices," argue the group.
They also hold out the consumer as a potential solution to the most pressing problem facing indigenous Irish firms; how to compete in export markets given the high cost of doing business in Ireland. The CSG points out that the sorts of business that prosper in a market characterised by radical consumers are "also the business that are most likely to succeed on export markets".
Getting to this promised land will require a policy framework that supports and empowers consumers, argues the CSG.
The first step is the establishment of a national consumer agency (NCA) that would be a powerful advocate for consumers and reverse the apathy that characterises the consumer lobby at present. It would carry out research, disseminate information, enforce legislation and be responsible for both education and raising awareness. The NCA would assume the responsibilities and budget of the Office of Director of Consumer Affairs and be independent of the Department of Enterprise and Employment.
While the NCA is undoubtedly the CSG's "big idea", it is probably the least controversial recommendation. Other specific structural changes that are recommended, such as the revoking of the Groceries Order, reform of licensing law and the promotion of generic drugs will be stoutly opposed by various vested interests.
A powerful champion or champions will be needed to push them though. Likewise the other initiatives such as the splitting of the regulatory and ownership functions of the Department of Transport and the introduction of a consumer perspective to the planning process.