Price of drugs in Ireland is enough to make you ill

As we reported recently, grocery prices have risen by more than 5 per cent in the past year. Gary Perry says that in his local pharmacy, the price of one of his prescribed medications (Aspirin gastro-resistant tablets, 75mg) increased from €7.11 to €8.60 between May 1st to July 1st.

“The same item can be bought over-the-counter, without prescription, from a high-street pharmacy in the UK for the equivalent of €1.13. According to my calculations, the differences in price between the Ireland and UK, for this one item is more than 761 per cent – enough to give anyone a heart attack.”

Taxman may take cut of debt write-off

Duncan McNiff got in touch about our mortgage article last week, in which we said that shortselling of property in the US allows people to sell for less than they owe and the bank writes off the difference.

“This is not quite true,” he writes, “because what you forgot to mention is that in a short sale the Federal government may take the view that the written-off debt is income . The $70,000 of forgiven debt is viewed as income and the borrowers could well be liable for to pay 40 per cent, or $28,000, in taxes.”

Flying in the face of air fare cost complaints

Shane Kearney got in touch in connection with a letter we published last week about the differences in taxes and charges charged between airlines flying from Dublin to London Heathrow. “I can’t help but think both fares he quotes are exceptionally good value. Not only that but the breakdown of taxes and charges is fairly clear to me,” he writes. “I think people have an unrealistic opinion of airfares these days.”

He points out that when flying to London the airline has to pay the salaries of the two pilots, four cabin crew, the check-in agent, ground staff who board the passengers at the gate.”

He says there is also the cost of the crew loading the aircraft. On average that is another four people. He says the cost of the fuel is $1,800 (€1,251) per flight to Heathrow. He lists a few more wage costs and then says the fare to Heathrow from Dublin our reader was quoted was €39.89.

“Two years ago, my wife was charged €100 to go from Dublin airport to Blackrock, in a taxi, via the M50 at 5pm. That is a distance of 24km. The petrol probably cost in the region of €7. The toll was €2. There was one “staff” member who in this case was the driver. His extra cost are insurance, his licence and the road tax.

“In all fairness, airlines are not charities but they are practically giving away seats at the moment. Companies need to make money. How they make it is their own business. If you don’t like the way a company does business then move your business somewhere else. God knows, there is plenty of competition out there.”

Butlers coffee prices have a bitter twist

Joanna Finegan sent us a mail pointing out that some major Irish cafes have not passed on the recent VAT reduction to their customers. “Butlers Chocolate Cafe website says they ‘recognise Irish products and support Irish jobs’. If that’s the case why haven’t they reduced the price of their coffee?,” she asks. “Not exactly purveying much happiness to Irish customers with that decision.”

We contacted the company and a spokeswoman said Butlers had deferred a price increase earlier this year as it awaited the VAT reduction. She said it had “enabled us to hold our prices despite fast-rising commodity prices and other costs over the past 18 months.”

She said the cost of coffee, chocolate, milk, bakery products, paper cups and other disposables had all increased in price over the past year but said that it had “held current prices for over four years and are still priced very keenly in relation to our competitors.”

“Coffee as a commodity has risen 130 per cent over the past year and is currently at a 14-year high with no prediction of a drop in this price. Earlier this year we reluctantly accepted a price increase from our supplier and as we awaited the vat reduction we absorbed the price increase.” She said the company was “committed to continue to do our best to offer quality products and services at affordable prices and to continue the offer of a free chocolate with every beverage.”