Consumer czar set to tackle ‘rip-off Ireland’

A NEW consumer czar was appointed yesterday to champion the rights of ripped-off Irish customers.

The appointment of Ann Fitzgerald as head of the National Consumer Agency (NCA), which replaces the Office of the Director of Consumer Affairs, came as it was revealed that:

* Irish people pay 23% more than other Europeans for the same product.

* 87% feel they are frequently overcharged.

* The economy has lost €800 million through faulty goods and bad services.

* Irish consumers are guaranteed more protection buying a €30 kettle than a €300,000 mortgage.

Enterprise Minister Micheál Martin promised to strengthen consumer rights with the independent body to fight overpricing.

The launch came as mobile phone users, who pay the fourth-highest charges in Europe, saw their bills push O2’s Irish profits over the €300m mark.

Ireland’s second-largest network provider revealed gross profits increased 9% to €327m last year but denied the results pointed to unreasonably high prices.

“This is not a very cheap economy to do business in,” said O2 chief financial officer Paul Whelan.

O2 and Vodafone have almost total domination of the market, with 3.4 million customers - 90% of users - and have been accused by telecommunications regulator ComReg, and an Oireachtas committee, of operating a virtual cartel.

Both are appealing a ComReg ruling that they must lease their networks’ air time to prospective rivals to increase competition, in a move that could cut prices by up to 25%.

But it emerged yesterday that two months after the appeals were lodged, Communications Minister Noel Dempsey has not appointed a panel to hear the case.

A spokesman for Mr Dempsey said last night a panel would be appointed “in the coming weeks” but the Consumers Association of Ireland (CAI) said the delay was unacceptable.

CAI chief executive Dermot Jewell: “The system is not working when you see a regulator take the strong stand they did and then find they are stalled for such an outrageously ridiculous long period of time. It’s simply not good enough.”

Mr Martin said consumer policy had been “deficient” but added the agency would “make consumers count” by tackling overpricing in areas such as telecommunications, food, transport, planning and medicines.

Legislation will not be implemented until next year but the NCA will be set up immediately and will have radical price policing power when formally established.

Labour Consumer Affairs spokeswoman Kathleen Lynch said the initiative contained nothing new.

She said: “It contains enough old chestnuts to sustain a conkers tournament.”