The State has granted publicans an "amazing privilege" through lack of competition, but they respond by charging indefensible prices, especially for soft drinks, the Dáil has heard.
Labour's community, rural and Gaeltacht affairs spokesman, Mr Brian O'Shea, criticised the Tánaiste because she was against price controls but said her "position on increased competition being the solution to excessive profiteering does not stand up to scrutiny. The drinks market is far from being a free market because of major restrictions on entry."
However, the Minister of State for Enterprise, Trade and Employment, Mr Michael Ahern, said price controls were introduced in the 1970s and 1980s when inflation was almost 25 per cent and "there was no evidence that price control had any appreciable effect on price inflation".
The Tánaiste "regards this policy as a failed one and she does not intend to reintroduce it. Rather, she puts her trust in consumer power together with competition, to reduce prices."
Mr O'Shea raised the issue after a Waterford constituent contacted him about being asked for €6 for a quarter bottle of wine in a city bar when the same wine cost €2.50 in a supermarket and "supermarkets make their profit at that price". He believed that comparable prices were being charged in other cities and towns.
His constituent, Ms Maria O'Grady, who also contacted the Director of Consumer Affairs, pointed to a difference of up to €1.40 in the price of a vodka in Waterford city bars, and said night clubs with entrance fees of €10 were charging up to €7 for a bottle of Budweiser and €4.50 for a vodka. Wines costing between €5.99 to €12.99 in supermarkets are on restaurant wine lists at €25 to €35 and a restaurant portion of carrots cost €5.95. "The price of soft drinks is also an area which requires attention," Mr O'Shea added. Publicans, "like everyone else in business, are entitled to a reasonable level of profit but excessive profiteering is unacceptable".
The State "has granted these people an amazing privilege but there is no gratitude for it". He called on the Tánaiste to meet the Director of Consumer Affairs to discuss "effectively addressing" these unacceptable practices.
