Madam, - Paul Fitzsimmons of Ryanair (July 16th) presents the Minister for Transport's proposed restructuring of Aer Rianta as a move towards more competition in the Irish tourist market and thus cheaper holidays for Irish consumers. I firmly believe Ryanair will exploit this change to the best of its abilities but I fear it may be the only company to do so.
With my schoolboy understanding of economics, I once believed that more market players increased competition and prices reduced accordingly. As a nation, however, we have managed to throw this age-old economic rule out the window. Increased competition in this country seems to result in price rises.
Taxi fares have gone up on a seemingly quarterly basis since the Government deregulated the market. There are more pubs in Dublin than every before yet the price of a pint is pushing the €5 mark. Cost prices of groceries have fallen yet the supermarket chains are pocketing the difference. We have plenty of restaurants yet few decent prices.
Why this seems to happen in Ireland alone? It seems as if we collectively accept and even enjoy ludicrous prices. Competition in Ireland does not mean good deals, low prices and healthier bank balances. - Yours, etc., MARK GILLERAN, Grange Park Grove, Dublin 5.
Madam, - The recent announcement by Mr Seamus Brennan of his plans to break up Aer Rianta have resulted in widespread public debate. Mr Brennan seems to have joined in chanting the mantra that "competition is good for consumers", thus parroting the repeated public pronouncements of Ryanair's Michael O'Leary. But one does not have to look very far in Ireland to see that this is not always the case.
For example, despite competition in the banking sector, profits and charges rise continually while services to the public are increasingly curtailed. Private health insurance has been opened up to competition, yet we have seen virtually exponential price increases by the VHI and BUPA over recent years, again while services diminish.
Both these examples are reflected time and again in other business sectors such as vehicle and home insurance, supermarkets, clothing and services.
The size of the Irish economy and market do not seem to allow the market to benefit the consumer in certain sectors. Mr Brennan appears hell bent on pushing through his initiative when perhaps a more prudent course of action would be better. In this light the conciliatory and measured response by SIPTU in calling for a transparent independent review of the plan seems the best course of action.
Only through this avenue will the truth be told about the viability and credibility of Minister Brennan's plan and about the specious argument that "competition" is always good for the consumer. - Yours, etc.,
ROBERT CALLANAN, Rivervalley, Swords, Co Dublin.