‘Pure greed’ driving up prices

GREEDY publicans, hoteliers and restaurant owners have been accused of ripping off consumers by continually pushing up prices.

Latest inflation figures show the cost of dining out and accommodation has risen by more than 7% so far this year. The prices of drink, entertainment and everyday household items have also risen sharply.

The Consumers Association of Ireland said increases were driven by 'pure greed' and warned that rising prices would result in a serious economic downturn unless costs were brought under control.

While inflation dropped slightly to 4.2% last month due largely to summer sales Irish rates are still two-and-a-half times the average for the eurozone.

The figures do not include recent hikes in health charges or college fees which are due to come into effect over coming weeks.

CAI chairperson Michael Kilcoyne said elements within the industry were engaged in profiteering to the detriment of all consumers.

"People shouldn't be surprised if tourists decide not to come here when they see the prices being charged in hotels and restaurants. They are being driven by pure greed as there is no evidence of wage inflation within the sector," he said.

Restaurant owners and publicans rejected the CAI allegations and said price rises were due to massive hikes in insurance and increases in waste disposal charges.

"One restaurant owner in Galway was quoted 46,000 for his annual insurance last March. His premium for the previous year was 7,000," said Restaurants Association of Ireland chief executive Henry O'Neill.

Opposition parties last night blamed the Government for failing to tackle the price rise and said recent hikes in hospital outpatient charges would push inflation up further.

Fine Gael's finance spokesman Richard Bruton said the Government's actions were now undermining Ireland's competitiveness.

"Repeated promises to tackle these problems are wearing thin. We simply cannot afford to price ourselves out of the market," he said.

Ireland tops the eurozone's inflation league at 4.2%, well ahead Germany, 0.7%, Belgium, 0.8%, France, 1.5%.

Economist Niall Dunne of Ulster Bank Treasury predicted Irish inflation may break the 5% barrier later this year depending on economic conditions.

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