Irish consumers pay 40 per cent more for energy than the EU average with costs here the second highest in Europe, but that is only the starting point when it comes to higher prices according to a new survey published by bonkers.ie.
The much higher costs faced by Irish consumers do not stop at energy with Ireland also appearing at the wrong end of the pricing table when it comes to hotels and restaurants, food and drink, healthcare, mortgages and communications, research from the price comparison website suggests.
When it comes to energy, only Denmark has higher prices than Ireland as the gap between Ireland and the EU average has widened significantly over recent years with the differential standing at 29 per cent above average in 2016.
Prices in Ireland are now well above traditionally expensive countries such as Sweden, Finland and Luxembourg.
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According to bonkers.ie, Ireland has the most expensive alcohol and tobacco in the entire EU with prices here over double the EU average although the figures it used were compiled before Minimum Unit Pricing (MUP) on alcohol was introduced, which has raised prices here further.
Ireland also performs poorly when it comes to restaurants and hotels, where prices are the fourth most expensive in the EU at 30 per cent above average. Again these figures were compiled before scores of hotels were block-booked by the Government to house asylum seekers and Ukrainians fleeing the war, which has seen prices in the hotel sector skyrocket this summer.
Ireland also has the third most expensive food and non-alcoholic beverages in the EU, with prices here 19 per cent above the EU average, according to Eurostat figures.
Meanwhile health costs are the most expensive in the EU, at a “staggering” 72 per cent above average while housing costs such as rents, mortgage rates, gas and electricity are again the most expensive at 89 per cent above the EU average.
Communications costs are the third most expensive in the EU at 47 per cent above average.
When it comes to clothing and footwear, prices in Ireland are actually 1 per cent below the EU average while the cost of household goods and furnishings are also competitive with prices here just 3 per cent above the EU average.
“No one is under the illusion that Ireland is a cheap place to live. However the scale of the difference in prices between Ireland and our neighbours is pretty shocking,” bonkers.ie spokesman Daragh Cassidy said. “And it’s getting worse, which doesn’t bode well for our competitiveness.”
He accepted that wages in Ireland are also above the EU average but suggested the differential was “not by over 40 per cent for most people”.
He called on the Government to look at measures that are “within its control to lower the impact of high prices and the cost of living in Ireland” including a reduction in the 23 per cent VAT rate, high charges for GP and hospital visits, stamp duty on car and home insurance and “astronomical” childcare costs
“Consumer bodies such as the CCPC (Competition and Consumer Protection Commission), and regulators such as the CRU (Commission for Regulation of Utilities) for energy and ComReg (Commission for Communications Regulation) for telecommunications also need to do better jobs and stand up for consumers more. If they need more powers to enforce laws and bring prices down, they should demand them,” he said.
Mr Cassidy called for the establishment of “a new ministerial position for consumer affairs”.
“We rightly have a huge focus on business and enterprise in almost all areas of government in this country. But that same focus isn’t extended to consumers.”
