Irish consumers are facing higher prices for goods and services even when there is competition among different suppliers, the Tánaiste, Ms Harney, has complained. Mark Hennessy, Political Correspondent, reports.
Speaking yesterday at the establishment of a new consumer rights body, Ms Harney said she wanted recommendations from it within nine months to boost the power of consumers.
However, it is not clear if the creation of the body will lead to a delay in the Government's review of the Groceries Act, which currently bans below-cost selling.
"Even where there is competition, and fairly intense competition here, there still seems to be prices that are out of sync with other European countries," Ms Harney said.
There was "no obvious reason" for the price differences, which could not be explained simply by higher wages, insurance premiums and property prices, she added.
Headed by Ms Ann Fitzgerald, the chief executive of the Irish Association of Investment Managers, the new Consumer Strategy Group is "a significant initiative" to improve consumers' rights, said the Tánaiste.
"The time has come to put an end to horror stories of rip-off Ireland. That can only happen if consumers are given more power, more voice and more influence.
"This is about much more than simply encouraging consumers to shop around. Consumers must know their rights, know how to enforce them and have confidence in the system to back them up when their rights are denied," Ms Harney said.
"I want this group to perform the same function as the Motor Insurance Advisory Board. That was very effective in setting out a road map as to how we needed to reform the insurance market. I believe the same can happen on consumer issues."
The new body would not interfere with the work of the Director of Consumers Affairs, who can prosecute for over-charging, she said.
The strategy group must produce its final report within nine months, although it may also offer interim reports.
"I believe this is an ambitious but realistic time-frame given the importance and complexity of the task," Ms Harney said.
The group will be able to order research of its own.