A double check on prices of basic foodstuffs is under way in the Irish Republic amid allegations that consumers are being ripped off.
One has been ordered by Consumer Affairs minister Tom Kitt, in the wake of reports showing that Irish prices of items like butter, milk, eggs and potatoes are considerably higher than those of other EU states now using the euro. The second survey is being conducted by the Irish Consumers' Association, which claims that retailers have used the introduction of the euro to push up prices.
Kitt, under fire for not imposing a price freeze at the time of the currency changeover, and with his government facing a general election in four months, promised "a comprehensive study" on the cost of food.
There may well be reasons for these price disparities, even though food in this country is zero rated for VAT, and if so, I would like to hear them," he said.
The investigation is to be carried out by a state agency, Forfas, and the minister said he expected to have the results within the next two months. He added: "The introduction of the euro in 12 countries means we can now compare like with like, and any retailers who think they can exploit consumers here will have nowhere to hide."
Earlier, the chief executive of the Irish Consumers' Association, Dermot Jewell, had announced "a full shopping basket check across the country" because of what he said was widespread public concern over rising food prices.
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