Government responsible for price hikes, says Fine Gael
The August consumer prices are due out today and Fine Gael believes they will confirm the latest Forfás report which found Ireland is the most expensive European country after Finland.
The Forfás Euro Changeover report found that Ireland is now among the most expensive locations in Europe for milk, cheese and eggs, chicken, potatoes, rents, pubs, restaurants and antibiotics.
The report also found that for a basket of goods costing 100 in Ireland, consumers in Germany paid 21 less, Holland 16 less and France 14 less. "In just three years, Ireland has moved from being in line with the rest of Europe for the basket of retail items to being 15% higher," Fine Gael finance spokesman Richard Bruton said.
But the report has been met with deafening silence from the Government, according to Mr Bruton.
"Far from taking measures to contain price increases, Government ministers have themselves got enthusiastically in on the act of hiking prices," he said.
The price increases he referred to include:
A 21% increase in the drug refund scheme.
A 26% increase in casualty department charges.
A 69% increase in third level registration fees.
An 18% increase in VHI charges.
A 13.25% increase in electricity prices.
A further 13% hike in natural gas prices is on the way and the latest VAT increases have 250 extra to the average householder's annual bill, Mr Bruton said.
"The Government must act to improve price competitiveness by tackling regulations and restrictive practices that are forcing up prices," he added.
However, a spokesman for the Government said it is not to blame for soaring prices and is taking the matter seriously. Tánaiste Mary Harney is taking a tough new approach to soaring prices and professional fees, the spokesman said.
Ms Harney has asked the Competition Authority to study the links in the food chain, from farm to shop, that allow those in the middle to skim off huge profits.
As Enterprise, Trade and Employment Minister, Ms Harney wants to find out if there are cartels involved in rigging prices and restrictive practices to push prices up, the spokesman said.
Meanwhile, the Irish Hotels Federation (IHF), expressed serious concern in relation to the increasing business costs facing Irish hotels and guesthouses Since 2001, the sector has witnessed wage cost increases of between 8% and 15%, insurance hikes of up to 200% and electricity increases of 14%.
IHF is calling on the Government to urgently address the insurance costs issue and to bring premiums to a level compatible with other EU countries.
President of the IHF, Jim Murphy, said the sector which employs 60,000 people had a very patchy year of trade and that "unfounded" reports of overcharging have not helped what is an already difficult situation.
"Irish hotels and guesthouses are offering good value for money, an excellent product, experience and service. Criticisms that overcharging occurs are largely unfounded," Mr Murphy said.
"Unfortunately, there seems to be a rush to point fingers but not based on proper like-with-like comparisons to other EU countries and the prices they charge," he said.
