SFA challenges Kitt on higher prices

Prices for certain goods are higher here than elsewhere in the EU because of higher costs, many of them applied by the Government, the Small Firms Association has said.

The association was responding to criticism from the Minister of State for Consumer Affairs, Mr Tom Kitt, who has ordered Forfás, the industrial development agency, to carry our an investigation into price disparities, now more apparent because of the euro.

The SFA's director, Mr Pat Delaney, accused Mr Kitt of being "selective with the facts" in highlighting differentials, which could be explained by different input costs.

Higher VAT, higher commercial rates and higher rental costs are among the reasons for unfavourable price comparisons between Ireland and the rest of the EU, he said.

Irish wages are increasing at three times the rate of other euro zone countries and the minimum wage here is an average 22 per cent higher, he added.

Other factors include the cost of traffic congestion, lack of progress on competition policy, and higher import prices because Ireland has no land bridge to the rest of Europe.

"In addition to this list, Irish business has paid over €800 million to facilitate the introduction of the new currency.The consumer has paid nothing.

"The Minister should look at all the facts before he suggests that monopolies and cartels are responsible for price disparity."