New measures criticised by Opposition

Opposition parties last night criticised the Government's new measures to boost the power of consumers and claimed they failed to tackle "rip-off Ireland".

Fine Gael's spokesman on enterprise and employment, Phil Hogan, said the recommendations of the Consumer Strategy Group (CSG) "lacked the tough approach necessary to put an end to anti-consumer practices".

He said the report fell short of the action necessary to tackle the vested interests who were pushing up prices.

Labour Party spokeswoman on consumer affairs Kathleen Lynch said the report "contained enough old chestnuts to sustain a conkers tournament".

She said there was nothing in the document that suggested anything would change in relation to the Government's action on consumer issues after the establishment of the new National Consumer Agency (NCA).

However, the publication of the report was welcomed by director of Consumer Affairs Carmel Foley, who will serve on the board of the interim NCA. "I believe that strong legislation and informed consumers are crucial to consumer protection and in that regard I greatly welcome the CSG's recommendations of greater funding and resources for advocacy, research, information and education," she said.

Retail Ireland last night also welcomed the establishment of the new consumer agency. Director Torlach Denihan said it should represent a balance between the needs of the consumer and the needs of business.

Employers' group Ibec said a strengthened consumer voice armed with better information could only improve the competitiveness of the economy.

However, the confederation's director of business sectors, Ciarán Fitzgerald, said: "No matter how well resourced the new consumer body is, it will not deliver value to consumers if it does not focus on the real sources of cost of living increases such as the Government charges on large parts of the service sector."

The Chambers of Commerce of Ireland said that it would like to see the charges imposed by certain public sector and commercial semi-State bodies examined by the new consumer agency.

Rosemary Garth, director of Food and Drink Industry Ireland, said if the Cabinet was interested in ensuring that consumers got a fair deal, it should look at areas where inflation was a real problem such as "Government-related charges and the protected-services area".

Pat Delaney, of the Small Firms Association, said the structure of Irish input costs was having an adverse effect on prices for business as much as for consumers. He called for a real debate about "rip-off Ireland".

The Irish Hotels Federation warned that the new agency could become "an empty vessel" unless there was a root and branch approach to reduce the cost of doing business in Ireland.

In a statement, joint chief executive of ADM Londis Stephen O'Riordan said the recommendation for the abolition of the Groceries Order posed a serious threat to the independent retail sector.