Bread and butter issues
At the same time as the
number of Irish millionaires
grows, bread and butter
issues are coming to
the fore as a major
concern for grocery
shoppers and consumers
of other goods and services.
Retail Intelligence issued
an online survey in
June showing how unscrupulous
businesses and individuals
used the conversion
of Ireland's currency
to the euro in January
of this year to gouge
consumers.
Claims and counter claims
over the prices charged
for groceries dominated
news stories in June.
The initial survey covered
costs in Dublin and
St Tropez on the French
Riviera. It revealed
that a shopping trolley
of goods cost €296.31
in a Dublin suburb and
the same goods cost
€232.82 in St Tropez.
A list of 40 grocery
and drink items showed
Irish consumers paid
23 per cent more than
their French counterparts.
Even Guinness was more
expensive in Ireland,
where a 500 ml. can
cost €2.09 compared
with €1.32 in France.
"There's serious
evidence that someone's
making a killing at
the expense of the Irish
consumer", said
Michael Kilcoyne , chairman
of the Consumers' Association
of Ireland.
The marketing director
of the Superquinn retailing
chain in Ireland, Eamon
Quinn, countered that
products produced in
Ireland such as lamb,
eggs, milk and Coca
Cola, were generally
cheaper than their French
counterparts.
The independent grocer
group RGDATA said later
that its own survey
showed that prices in
Ireland are more than
4 per cent cheaper than
in six other EU states.
In April and May, RGDATA
had attempted to purchase
a range of 35 "common
grocery products"
such as Coca-Cola, Heinz
Ketchup, milk, eggs,
cheese and bread, at
well-known European
stores but found that
as few as 22 of these
could be purchased in
France and Germany.
However, a report from
Forfás, a government
agency, has said that
Ireland has become the
most expensive Eurozone
country in which to
buy a basket of groceries
in retail outlets. In
fact, it claimed that
a typical basket of
groceries including
potatoes, chickens,
eggs, lettuce, and biscuits,
costs more in the average
mid-priced outlet in
Ireland that anywhere
else in the eurozone.
It questioned why dairy
products, eggs and vegetables
are among the most expensive
in Ireland although
the country produces
them and is the only
eurozone where they
are VAT exempt.
Ireland, it found, was
also the most expensive
for cigarettes and wine,
but relatively inexpensive
for heating fuel, electricity
and clothing. It added
that salaries in Ireland
were also rising rapidly
and after-tax Irish
employee incomes are
third-best paid in the
eurozone, after France
and Luxembourg.
Forfás also said
there was evidence of
euro "profiteering"
by doctors, dentists,
publicans, hairdressers,
restaurants and others,
consequent on the introduction
of the euro in place
of the Irish punt.
My, my, my! How times
and tastes have changed.
Heinz Ketchup and Coca
Cola. What happened
to HP Sauce and refreshingly
cold clear water from
Neely's well?
Not altogether surprisingly,
Bord Failte, the Irish
Tourist Board, has found
that the number of tourists
visiting Ireland so
far this year is down
compared with previous
years.
Factors that are being
blamed are the lingering
impact of September
11 on tourism from the
U.S., lack of access
on transatlantic routes,
and concern about high
prices in Ireland.
Bord Failte warns that
businesses will have
to keep prices down
to protect an industry
worth 5 billion euro
to the Irish economy.
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