There is ‘deliberate price gouging’ at play on the Irish high street – with figures showing Irish people are paying more than their UK counterparts for many items this Christmas.
That is according to the Chairperson of Irish Fashion Designers Eddie Shanahan who joined Newstalk Breakfast this morning.
This comes after an investigation by The Journal found that several companies operating in both Britain and Ireland are charging more in Ireland than in the UK.
They found a host of price discrepancies when looking at the cost of products in retailers such as Currys, Boots and Marks and Spencer this week.
Mr Shanahan told the show there were multiple reasons behind why some products can be more expensive in Ireland than in the UK.
However, he said some businesses are taking advantage of existing high prices in the Irish market.
“It is probably true to say that in some cases there is deliberate price gouging,” said Mr Shanahan.
“This is the case, I would say, is happening in a minority of situations - but it is happening.”
Brexit
Mr Shanahan said Brexit is another factor at play.
“Price discrimination, meaning you can’t be charged a higher price when buying prices or services online in the EU, doesn’t apply to the UK since Brexit,” said Mr Shanahan.
“You also have other things like VAT in the UK is 20% and here [in Ireland] it’s 3% dearer.
“The issue of currency conversion is another one as well. Unfortunately, there is no legislation on currency charges, so we’re caught on a few fronts there.”
Options
Mr Shanahan said there are more options available to the bargain-hunting consumer these days.
“You can shop around for the same products on a variety of sites now, consumers do have options,” he said.
“A lot of businesses now have their own sites to sell to consumers; that business straight-to-consumer model is becoming much more prevalent now.
“The third-party retailer is being cut out. You can shop around for the same products on a variety of sites.”
Expensive country for business
Mr Shanahan said Irish businesses are being hit with high costs from many angles.
“We are an expensive place to do business, that is for sure, but it’s nothing new,” he said.
“If you look at the costs of insurance, it’s a headline issue week after week in this country.
“The cost of electricity, the cost of keeping your store open and paying staff what they demand – yes we are an expensive place to do business.”
