Eurozone price differences probe ordered

The Government has ordered an investigation into high prices in Ireland that have been highlighted by the changeover to the euro.

A minister prominently involved in the January 1 switch from the punt to the new common eurozone cash, today insisted the first month had confirmed the official view that the development would benefit Ireland’s economy.

But Consumer Affairs Minister Tom Kitt also conceded that the change had highlighted steeper prices in Ireland than in some other parts of the European Union - and announced a study of the costings set-up.

He reported an increasing awareness among the public about euro price differences as a result of the transparency and openness in the 12 European Union states using the same currency.

The minister maintained in a comment on the opening weeks of the new money that: ‘‘The floodlights are now sharply focused on prices throughout the length and breadth of the eurozone and any retailer who thinks he or she can exploit the consumer will have nowhere to hide.’’

He also underscored, however, the right of consumers to ask why there was now obvious differences in prices across EU member countries.

He said: ‘‘Whereas the new transparency - combined with a vigilant and critical media, will lead to a more competitive trading environment among the 12 states, I believe the data produced so far has demonstrated that the prices charged in Ireland for some of the goods surveyed may be higher than necessary, when compared with prices charged for the same goods in the other countries.

‘‘Notwithstanding the issues of different levels of taxes within the eurozone, I believe the consumer is entitled to ask the simple question - why is there this disparity in prices?’’

Mr Kitt said the question had first to be put to those traders in Ireland who were now charging higher prices for goods that were sold ‘‘much more cheaply’’ in other member states.

He confirmed that government advisory agencies and other groups would ‘‘carry out a comprehensive study in this area,’’ and report back to him as soon as possible.

The minister stressed the importance of consumer and non-governmental organisations throughout the eurozone in monitoring and comparing prices and in ‘‘maintaining the spotlight on the levels of pricing.’’

He advocated a euro-wide collective strategy on the issue, saying: ‘‘The consumer cannot lose if we progress the issue in this unified manner.’’