Time to switch purchases from the over-priced UK market
Ms Coughlan completely misses the point if she believes that the introduction of the euro has, by itself, induced price inflation and increases in the cost of living in the Republic.
Indeed, prices across a whole range of products have increased since January 1. However, it is interesting to note that the introduction of the euro did not produce price inflation in other euro-zone countries, such as Austria, France, Germany, Finland, Spain, Belgium and Italy.
So why have retail prices in Ireland increased, while across Europe prices on similar goods and services remained static or fell? Look no further than the purchasing habits of Irish retailers.
More than 70% of all imported foodstuffs and household goods are bought from UK suppliers and paid for in sterling, the most over-valued currency on the planet.
More pertinently, Ms Coughlan should be asking the question as to why Irish retailers choose to purchase merchandise in the UK in the full knowledge that they are buying in the most expensive European source country for goods at present. In reality, Irish consumers are paying for the poor purchasing practices of Irish retailers.
What is annoying is that these same Irish-based retailers could save 20%, on average, on the cost of merchandise if they purchased in euro-zone countries. These same euro-zone countries produce or trade 90% of all foodstuffs, household goods and fresh produce originating in Europe.
So the real question is this. Why after 29 years as a member of the EEC/EU is the Republic still buying virtually all its eggs from one small basket?
The introduction of the euro presented all European consumers with a new era in pan-European price transparency. Quite obviously, Irish retail groups have yet to learn to trade outside the British market.
Until they do, Irish consumers will continue to pay through the nose for everyday goods and services.
Duncan Fielding,
Taylor’s Hill,
Galway.
