Leo Varadkar & Deirdre Clune at the launch of Fine GAel's Finding Real Value policy

I wrote this Article for the Evening Echo and it was published on page 10 today (Wednesday 11th February 2009).

During the Celtic Tiger years our cost of living here went up much faster than in other countries. The boom of the Celtic Tiger years allowed the Government to ignore this problem but with rising unemployment, higher taxes and falling incomes, value for money is now more important than ever.

Major price differentials between Ireland, Northern Ireland and other EU countries when it comes to petrol, diesel, groceries and home-heating oil have been identified:

• In June 2008 a National Consumer Agency (NCA) survey of grocery prices north and south of the border revealed substantial price differences.
• On the 21st January 2009 the NCA looked at the prices of 44 products across 13 stores which showed that consumers in the Republic are being charged an average of 51% more than consumers in Northern Ireland and the UK.
• On November 24th 2008 petrol was 8.7 cent per litre dearer, diesel 9.1 cent dearer and home-heating oil 9.3 cent dearer than in the EU.
• A Fine Gael survey of home-heating oil last summer showed that when you take out VAT a 1,000 litre tank of home-heating oil in the Republic costs an average of €85 more than in Northern Ireland.

The Euro/Sterling exchange rate narrowed over the last few months and our VAT rate was increased in the October Budget from 21% to 21.5% while the UK VAT rate was reduced from 17.5% to 15%. These changes have been a double blow; one inflicted upon us and the other self-inflicted, to our economy. We now see consumers flooding across our borders to Northern Ireland and the UK for the better value revealed in the NCA’s January survey.

The Consumer Strategy Group published its report in April 2005 outlining 32 recommendations that it believed would benefit Irish consumers. Four years later only 9 of these recommendations have been implemented, 4 have been partially implemented and 19 have not been implemented.

The situation now being faced in homes all over Ireland has reached a critical level for many Irish families. This crisis can no longer be ignored by anyone, least of all those elected to govern not over us, not in their own way and not by ignoring advice but in our name, on our behalf and for our benefit.

Immediate action is required to ensure that in this economic downturn steps are taken to protect consumers from rip offs and to reduce the cost of living Irish households are facing.

Just days ago we launched Fine Gael’s proposals to enhance consumer rights and reduce the cost of living. Our “Finding Real Value” policy contains 10 proposals:

1. Revising Budget 2009’s measures which have resulted in higher consumer prices, specifically the VAT increase to 21.5%.
2. Freezing Government charges and local authority rates and levies to control business costs and reduce the pressure on businesses to increase prices.
3. Merging the National Consumer Agency and the Competition Authority into a single body called the Irish Fair Trade Agency (IFTA).
4. Give IFTA an expanded remit including:
   1. the role of taxpayer and consumer advocates within the social partnership process;
   2. the publication of regular price surveys and on-line price leagues;
   3. monitoring tax and excise;
   4. the preparation of codes of conduct; and
   5. ensuring that benefits in currency fluctuations are passed on to consumers.
5. Introducing a legal requirement that Government and public bodies are required to give a reasoned response to recommendations from IFTA.
6. The establishment of a new Arbitration System to adjudicate on disputes between consumers and vendors up to a limit of €6,000 and increasing the Small Claims Court threshold to €12,000.
7. Requiring the utility regulators (Including the Commission for Energy Regulation, ComReg and the Taxi Regulator) to publish detailed reasoning for price increases and giving the consumer the power to petition the Regulator to review prices. Also requiring that once an application to increase prices has been received the regulator involved should hold public meetings to give an opportunity for opposing arguments to be heard.
8. A new requirement that utility and telecom providers refund customers for breaks in service.
9. The abolition of surcharges on consumers who pay by credit card, debit card or direct debit and a prohibition on expiry dates on vouchers.
10. An immediate review of electricity and gas prices in view of falling commodity prices.

Fine Gael has outlined the ten steps we believe this Government needs to take now to help reduce the cost of living, protect consumer rights and end the rip off culture.

Until such time as this Government decides to do something positive for consumers it will be up to each of us to highlight over-charging, price fixing and scams. It is only by drawing attention to the specific situations where people living in the Republic are forced to pay far more for goods and services than our neighbours in Northern Ireland, the UK and Europe that an unwilling Government will be forced into action.

Log on to www.ripoff.ie to take part in the campaign.