SIPTU PRESIDENT Jack O’Connor has called on the Government to appoint an independent expert from overseas to investigate alleged profiteering in the economy.
He was responding to a Eurostat survey which found that prices in Ireland are almost one-third dearer than the EU average.
“Consumer prices are remaining persistently high against a background of falling incomes and a deliberate policy of allowing unemployment to fester in order to drive down wages,” Mr O’Connor said.
“It is impossible to understand why home-produced items such as bread, meat, milk or eggs are costing between 20 per cent and 40 per cent more here than in other EU member states, including our nearest neighbour and biggest trading partner Britain.”
He claims that profit-taking was continuing on a massive scale. “While working people are being crucified with falling incomes and rising taxation, certain elements in business are continuing to cream it.”
Retail Ireland said the price gap between Ireland and the rest of Europe had narrowed since 2009 because of deflation here and inflation in other countries. Comparisons between Ireland the UK were “fraught” because of exchange rate fluctuations.
According to the report, the price gap between Ireland and the rest of Europe has widened since 2007, from 27 per cent to 31 per cent. Only Denmark was more expensive in 2009.
It finds that health and education are each 56 per cent dearer in Ireland than elsewhere in Europe.
Cigarettes are twice as dear, and alcohol costs 67 per cent more than the EU average. Restaurants and hotels are 41 per cent more expensive and food costs 27 per cent more.
The price differential with the UK is even starker. Food costs 30 per cent more in Ireland than the UK. The margin for hotels and restaurants is 51 per cent and for electricity and gas 26 per cent.
