Pub and shop rip-off as Dublin pays higher prices

PUBS and supermarkets are ripping off consumers - with Dublin people paying more for five out of every seven products they buy than their counterparts outside the capital.

The Government must investigate whether cartels are controlling prices in Dublin, consumer lobby groups have urged.

This follows another price survey which named the capital as the most expensive place in Ireland.

Chairman of the Consumers’ Association of Ireland Micheal Kilcoyle said the latest price analysis by the Central Statistics Office (CSO) helped explain why Dublin is now one of the most expensive cities in the world.

Of 73 items surveyed by the CSO, 47 were more expensive in Dublin.

A 10kg bag of potatoes in the capital was 33% more expensive than anywhere else in the country, meat was 17% dearer and cinema tickets were found to be 18% higher.

For alcohol consumed in bars, the CSO found that “prices were consistently higher in Dublin” with consumers paying 7% extra on average for their drink.

“I want the Competition Authority to investigate whether there is a cartel of some kind in operation in Dublin. The prices for these goods looks very consistent,” Mr Kilcoyle said.

He dismissed explanations from publicans and other service providers that prices are higher in Dublin due to higher wages, rents and insurance costs.

“Wages now are much the same around the country. With a bigger population base, profit margins should be less because the volume is much bigger. Instead, they do the opposite and charge more to make bigger profits. They use every opportunity to rip customers off,” he added.

Fine Gael Enterprise, Trade and Employment spokesperson Phil Hogan said while some higher prices might be attributed to higher labour costs, margins as high as 33% seemed excessive.

He also called for the establishment of a Consumer Rights Enforcer to champion consumer rights.

Mr Kilcoyle felt instead of creating yet another consumer watchdog, it would be better for the Government to adequately fund and give greater powers to the ones already created.

The Competition Authority said it did not discuss current or potential investigations, but asked anyone with any evidence of a cartel to contact it.

Friends First Chief Economist Jim Power said the issue of prices cannot be as big as people think or public servants would be jumping at the chance to move from Dublin under the Government’s decentralisation plans.

He also warned that many pubs and restaurants were pricing themselves out of existence and the tourism industry was under threat. from high prices.

This is the first such survey by the CSO - it will be published bi-yearly - and it is the result of pressure from consumer groups for the information.