Sir, – Given the large fall in sterling, firms such as SuperValu should be paying less in euro terms for UK-sourced products, and even the initial 10 per cent price increase apparently sought by Unilever would still leave room for a price reduction in Ireland. What is not clear is whether SuperValu and other firms are being invoiced in sterling or euro. In the former case, it would be up to the importer to pass on the implicit euro-denominated reduction. In the latter case, one can only speculate as to whether Unilever has just applied the same percentage increase to the euro-denominated price as it did to its sterling customers. This might sound extraordinary, but pricing policies in the UK-Ireland supply chain have always been a bit obscure.
Sourcing some supplies from other euro countries might remedy some of the increased volatility (and exchange-rate risk) involved when importing from the UK.
I wonder has the Competition and Consumer Protection Commission given this any attention? In terms of consumer welfare, these issues could be larger than the impact of the recent budget. – Yours, etc,
JOHN SHEEHAN,
Dublin 14.