The funeral industry has described as false and erroneous the claims by Gay Mitchell that there is a closed market operating in Dublin and that prices are exorbitant.
Gus Nichols of the Irish Association of Funeral Directors strongly challenged the claims made by the Fine Gael MEP yesterday.
Mr Mitchell said information he received showed it was extremely difficult to break into the funeral undertaking business in Dublin, as the industry was run by a number of commonly owned groups who kept a very tight rein.
He also claimed that the average funeral cost in Dublin was €3,500, but €6,500 was a more common figure. A huge discrepancy existed between Dublin funeral prices and those around the country, where the average cost was €1,000 less at €2,500.
He began the inquiry six months ago. "What I found was that the majority of funeral undertakers in Dublin are operating within a closed market and are part of only four groups who own the lion's share."
He said 34 premises appeared to be spread between 11 undertakers, but in fact they were all in the common ownership of four entities. Three of these owned 32 of the 34 concerned. He had asked Dublin City Council to provide planning permission for more outlets.
He had also asked the director of consumer affairs and the Competition Authority to take steps to ensure competition; the HSE to create an independent funeral costs advisory service; and insurers and credit unions to consider providing co-operative funeral services.
Mr Mitchell said the four groups were Fanagans/Kirwans/Nichols/Carnegies/Murrays (all under common ownership); Massey Brothers/Patrick Massey; Staffords/Jennings; and finally Frank Jennings and Sons/Quinns.
But Mr Nichols said: "The inference that there is no competition is false and erroneous.
"Yes, there are four leading funeral companies, but that is no different from any other business sector. There are at least 25 other individual businesses in Dublin who have nothing to do with the four main companies."
It was true there were parts of the city centre where the four firms operated, but some of these businesses were 200-years-old and had always been there. They were not monopolising it. For example, who would be able to buy a premises in Aungier Street these days, he asked. Then there was the problem of acquiring planning permission in the city centre.
On prices, Mr Nichols said there was confusion. The funeral director charges were 60 per cent of the bill. Payments were made from the final bill for cemeteries, crematoriums, florists, newspaper death notices, church fees, organists, catering. The funeral director was happy to take care of these payments.
The average cost was €3,500 for the funeral director, but the other charges could bring it up to €6,500.
Mr Nichols agreed there was a difference between Dublin and outside the capital, due to the cost of graves in Dublin.