Coughlan's retail price-control suggestion criticised

GROUPS REPRESENTING retailers and consumers have criticised suggestions that price controls might be reintroduced to stop over…

GROUPS REPRESENTING retailers and consumers have criticised suggestions that price controls might be reintroduced to stop over-charging on goods imported from the UK.

Speaking last weekend, Minister for Enterprise Mary Coughlan said she might reintroduce price controls if retailers refused to pass on the sterling differential to consumers.

A survey by the National Consumer Agency last week showed an average mark-up of 51 per cent on non-food items relative to the UK sterling price.

However, Retail Excellence Ireland said yesterday price controls were unworkable when so many products were involved. Chief executive David Fitzsimons predicted restrictions on prices would backfire on the Minister and kill competition for consumers.

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“As the experience of energy regulation [has shown] price controls give no incentive to give better value for the consumer.”

Mr Fitzsimons also said it was very unfair of Ms Coughlan to dismiss Irish retailers on the basis of the NCA report, which looked at the behaviour of the Irish arms of UK retailers. He claimed Irish retailers were themselves being “ripped off” by a group of UK suppliers who would not allow them to buy good from their sterling price lists. Instead, they were forced to pay “Paddy prices” that were up to 30-50 per cent higher.

He cited the example of an Irish fashion retailer who has pay €1.80 per £1 at a time when the two currencies are approaching parity. One UK biscuit manufacturer was imposing a 220 per cent differential on its normal sterling prices in Ireland.

The Consumers’ Association of Ireland also claimed the introduction of price controls would be a disaster, especially in a recession. It said the measure would result in all prices going to one level, usually the highest allowable.

Meanwhile, a report published by the European Commission yesterday shows that Irish prices are among the highest in Europe.

Telephone line rental was the highest in Europe; mobile charges were the second highest; and electricity prices were the second highest, according to the Consumer Markets Scoreboard Card.

Paul Cullen

Paul Cullen

Paul Cullen is a former heath editor of The Irish Times.