High prices your own fault, says Harney
Thursday July 10 2003
TANAISTE Mary Harney last night stepped into the prices crisis by claiming consumers only have themselves to blame for not "shopping around".
She said they should be "more demanding" in the battle against spiralling costs.
Ms Harney, who as Enterprise and Trade Minister has responsibility in this area, ruled out a price freeze in the face of the widening controversy over "rip-off Ireland".
Yesterday, she called on consumers to "take an active role" claiming many were "insensitive to the prices being charged".
Retailers, hotels and pubs yesterday strongly defended themselves against attack after Central Statistics Office figures showed price increases are costing every Irish household at least an extra €1,000-a-year.
As more evidence of excessive mark-ups emerged, Ms Harney said many people did not even count their change or know the prices of ordinary goods they bought every day. If people went elsewhere, retailers would realise they were not apathetic about the cost of the goods they were buying, she said.
The Tanaiste said that until consumers used their power and moved their business to pubs, retail outlets and restaurants offering better value for money, prices would remain high.
But she came under fire for her "shop around" comments from Fine Gael Enterprise spokesman Phil Hogan, who accused her and the Coalition of contributing to the prices problem.
"The Government itself is responsible for 60pc of all the increases," said Mr Hogan, who said it was obvious from her comments that Ms Harney did not have the consumers' interests at heart.
He said the high prices of insurance, energy and the non-traded services were evidence of how the Government was treating consumers.
Ms Harney also said the claims by Fine Gael's Finance spokesman Richard Bruton that every household was being hit with mark-ups totalling €1,000 a year would have to be scrutinised.
Ms Harney insisted price freezes were not the answer to inflation and were actually counter-productive.
Meanwhile, further evidence emerged yesterday of consumers being hard hit on the prices front:-
* Parents are paying up to €1,000 a month for childcare.
* An Irish Farmers' Association survey has found shops are imposing markups of up to 100pc on the price of lamb.
* Supermarkets are selling seafood to customers for over ten times the price fishermen are getting to land the catch.
Kinsale trawler owner Sean Walsh said the price consumers were paying for fish was "horrendous" while many fishermen were finding it "harder and harder" to make ends meet because of the low prices they were being paid.
- Gene McKenna and Grainne Cunningham
