WHEN A cost comparison is made between the price of some basic consumer services in Dublin and Belfast, the result is scarcely surprising: prices are much higher in Dublin, by almost one-third on average. A recent price survey by Consumer Choice magazine has highlighted this large differential. It found that a mechanic in Dublin costs 45 per cent more than in Belfast, while a routine dental examination is far more expensive in Dublin. The survey findings confirm what other earlier cross-Border price studies have shown.
A year ago, the National Consumer Agency (NCA) found that grocery items were up to one-third more expensive in the Republic than the North. In response many shoppers, plainly frustrated by a widening price gap for household goods, put price before patriotism and travelled northwards to do their shopping.
At that time, retail sales were at a 24 year low and the resulting loss of business forced supermarkets – led by Tesco – to change their retailing approach. The result was a retail price war from which consumers have greatly benefited. An NCA survey last month found that supermarket food prices in the Republic had dropped by up to one-fifth in recent months. The price cuts reflect healthy competition between the supermarket chains, precipitated by a consumer revolt as budget-conscious shoppers crossed the Border in increasing numbers.
When shopping surveys expose major differences in the price of household items, consumers have an obvious incentive to shop around. But consumers, when faced with a dental or plumbing emergency, have less discretion and no time to waste. Fixing the problem becomes the priority and the financial cost is a secondary concern. Consumers quickly discover they have little negotiating leverage on price.
Two weeks ago, Minister for Enterprise Mary Coughlan remarked how certain professional groups – including lawyers – were not yet feeling the “chill winds of economic reality” and should reduce their fees. In a recent court case relating to legal fees and costs associated with an examinership process, a firm of solicitors had charged €1,250 for five hours work – to scan, photocopy and prepare booklets for court.
But it seems that extravagant expense was scarcely questioned, suggesting that some professions like law and accountancy are still partially insulated from the chill winds of economic reality to which so many others are cruelly exposed.