The Government is to demand that UK retailers pass on savings to Irish shoppers from the current euro/sterling exchange rate, the Dáil heard today.
The Labour Party had claimed that stores like Tesco and Marks & Spencer were ripping off customers with mark-ups of as much as 50 per cent on some products.
However, Taoiseach Brian Cowen said today that the Government would be writing to UK retailers on the issue to discuss the delay in passing on the benefits accruing from the appreciation of the euro.
“The Tánaiste will be writing to the heads of the major retail outlets both here and in the UK in coming days to find out from them what plans they may have to deal with any unjustified price differentials that may exist,” he said.
Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan will also hold talks tomorrow with the Retail Ireland arm of employers’ group, Ibec.
Mr Cowen also said the National Consumers Agency will carry out more surveys on price differences in the sterling and euro zones.
The watchdog will also intensify its information campaign to keep consumers better informed on prices.
Labour leader party Eamon Gilmore, who raised the issue a week ago, said the Taoiseach must be ready to take action against the UK retailers.
“Tell them in your own blunt language what is required of them in this country and that the ripping-off of Irish consumers will not be tolerated,” Mr Gilmore said.
On the issue of rising diesel prices, Mr Cowen told the Dáil: “We will try to do what we can on that. There is the backdrop of the increase in global oil prices.”
Labour had claimed that oil companies were operating a cartel by disproportionately hiking up the price of diesel compared with petrol.
A Government spokesman said the Cabinet today discussed the issue at length at its weekly meeting.
The Tánaiste also gave an extensive briefing to her ministerial colleagues on her contacts with retail and consumer representatives in recent days.
Mr Gilmore added in the Dáil that the Government should introduce legislation or tighter regulation if necessary.
“The Government needs to show that, if necessary, it will flex its muscles on this. This has gone on for quite a while. The change in the euro/sterling currency rate has been in place for some time.
With each passing day, consumers are continuing to be ripped off.“
“Additional regulatory and legislative measures should be introduced to adopt practices that are not ripping off consumers. I’m glad that some attention is being paid to this.”
The Taoiseach reiterated that whatever action that can be taken by the Government will be taken following correspondence with the UK retailers.
“If the replies are not what I would expect them to be, we will look at every lever that’s available to us to ensure that consumers are protected in this jurisdiction and that they get the same value for money as people elsewhere.”
PA