Vol. 542 No. 2
158 Mr. Currie asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the accelerating increase in the cost of living (details supplied); if she will consider a price freeze in advance of the introduction of the euro for a period of some months; and if she will make a statement on the matter. [23879/01]
The Government does not intend to introduce a price freeze in advance of the introduction of the euro. Such a move would be unwarranted and undesirable.
The Deputy has not provided any details that demonstrate an acceleration in the cost of living linked to the introduction of the euro. According to the latest statistics from the Central Statistics Office, released last Friday, consumer prices for September 2001 increased by 0.4% over the previous month. This increase was the same as that recorded for September 2000. The annual inflation rate remained unchanged at 4.6% in September 2001. On this basis there is no evidence to suggest that there is an upward movement of prices that can be attributable to the introduction of the euro.
It should also be borne in mind that changes in prices do occur for various reasons and at different times during the trading year. In a competitive environment this is perfectly acceptable. What is unacceptable is that certain traders may seek to use the introduction of the euro as an opportunity to introduce unwarranted price increases. The ultimate sanction for those who do so should be loss of business. Successive Governments have recognised that the encouragement of a competitive environment and promotion of greater price awareness is a far better way of ensuring value for money for consumers than the imposition of price control. The introduction of the euro does not change this fact.
The most effective way of minimising confusion for consumers and ensuring that the changeover to the euro does not lead to unwarranted increase in prices is to empower consumers to be vigilant in monitoring prices. This is the objective of dual display of prices. The key Government initiative to encourage dual display of prices has been the development of the national code on euro changeover. Retailers who subscribe to either the national code or to sectoral codes of practice on dual display approved by the Director of Consumer Affairs commit to displaying prices in both Irish pounds and euro at a minimum from 1 October 2001 to 9 March 2002. They also undertake to provide information in-store to help consumers understand the conversion to euro and to facilitate price comparison.
Subscribers to the codes are entitled to display a special logo devised by the Director of Consumer Affairs as evidence of a commitment to implement the changeover fairly. Each subscriber has undertaken to provide a contact point for consumers who wish to complain if they do not believe they are being treated fairly. Should the matter not be resolved to the consumers' satisfaction they will be entitled to take the matter up with the Director of Consumers Affairs who has already indicated her intention to publicly "name and shame" any trader who displays the logo but fails to live up to the commitments involved.
