The Government has rejected claims by the Consumers' Association of Ireland (CAI) that the euro changeover was being used by businesses to increase prices.
The CAI said a survey being conducted on its behalf has shown a prices increase on a range of goods since the changeover began on January 1st. But the Taoiseach rejected the claim, saying: "that is not the information the parties concerned have . . . and we are watching the situation every day."
Based on an interim report of the survey, which will be completed when the changover period ends on February 9th, CAI's chairman Mr Michael Kilcoyne said some prices had gone up by as much as 10 or 15 per cent even though inflation was only four per cent."We are finding increases by pubs, shops, doctors, restaurants, laundrettes, car washes and so on. They are denying the higher prices are related to the euro but say they result from rising costs," he said.Mr Kilcoyne claimed the consumer price index for January to be published next month would reveal a jump in inflation as a result of higher charges and costs as a result of the euro.Responding to the claims, the Director of Consumer Affairs told
ireland.com
it was up to those businesses indicated by the CAI to justify their price rise.A spokeswoman said if retailers decided to increase prices that it was up to them as no price controls had been imposed. She added once the euro conversion was in accordance to EU rules the Director had no role to play.She said the Director had not been sent any report from the CAI regarding the claims.The Minister for Consumer Affairs, Mr Tom Kitt, also said his department had not been contacted by the CAI over the allegations.In a statement today, Minister Kitt called on the CAI to publish the survey results as soon as possible, naming the businesses they allege have implemented unjust price increases so that consumers make their own judgements.Meanwhile Mr Ahern insisted today all complaints had been checked and restaurants and pubs have been watched."The information is that while there have been price increases in some areas, there have been reasons for them . . . But overall, the price increases have not been linked to the euro change-over."Mr Ahern said the CAI's suggestion of a price freeze for two months on either side of the changeover to prevent profiteering had been tried before but had not worked.Mr Kitt also rejected the suggestion that a price freeze would benefit consumers. He said this policy had been abandoned in the 1980s because it was "unworkable and in many cases acted to the detriment of consumers".
Additional reporting PA and AFP