Coalition 'extremely reluctant' to impose price caps

Neale Richmond claims introducing price controls will not work in Ireland

Minister of State Neale Richmond TD cited the examples of  Croatia and Hungary which he said found price caps were not successful. File picture: Gareth Chaney/Collins

Companies have been accused by the opposition of using the inflation crisis as a way to make extra profits, amid calls on the Government to intervene.

However, the Coalition is “extremely reluctant” to go down the route of price caps on food and other essential items, with minister of state Neale Richmond claiming it will not work in this country.

“Croatia and Hungary both introduced food price controls, although their food inflation peaked at 20% and 50% respectively,” he told the Dáil.

Not only were they in a different position to Ireland, but they have found the caps have not been successful as they related to specific products. 

Sinn Féin Cork South-Central TD Donnchadh Ó Laoghaire called on the Government to “do all in its power” to ensure savings made by supermarkets and large food retailers in respect to falling input costs are passed on to consumers through lower prices.

“People badly need a break from this constant barrage of sky rocketing costs and the Government must act on this now,” he said.

Social Democrats leader Holly Cairns accused companies of engaging in “absence profiteering”.

Separately, Green Party leader Eamon Ryan has said high energy costs cannot be “easily reversed”.

The environment minister said energy prices are high because of Ireland’s reliance on fossil fuels, and labelled the State as a “price taker”.

Mr Ryan said a switch to renewable energy is “the best way” to bring down prices “immediately”, noting that energy companies “hedge forward”.

He said grants which allow for the retrofitting of homes would bring down prices by approximately 30%.

Concern has been raised about the number of people in arrears on their gas bills by the utilities regulator.

Commission for the Regulation of Utilities (CRU) chairman Jim Gannon told an Oireachtas committee yesterday the number of people in arrears had risen from 18% to 23% in 12 months, but said the overall figure remained “below pre-war” levels.

He said the electricity credits implemented by the Government had seen electricity arrears drop from 13% of customers to 9%.

This means that 160,399 gas customers were in arrears at the end of March — up nearly 25,000 — with 199,790 electricity customers in arrears, down by 83,000.

Mr Gannon told TDs and senators that the CRU “remains very concerned”.