1. Reviewing the Business Architecture of Consumer Price Statistics Ann Fitzgerald Chief Executive Speaking Points

2. Presentation Outline Origins and Role of the NCA Price Surveys 2007 -2009 Current Initiatives Proposal

3. National Consumer Agency Origins March 2004 Consumer Strategy Group (CSG) Examine how consumer voice could be better heard –Make proposals for development of a consumer strategy Research –Benchmarked Irish position against international comparators –Undertook consumer focused studies on retail, planning, transport, pharmaceuticals

4. CSG Report Conclusions Consumer Strategy Group report April 2005 Irish consumers not getting a fair deal Consumers poorly informed of their rights Inadequate means of redress Government policy deficient Empowered / confident consumers are drivers of innovation and competition – particularly relevant to current discussion

5. Government Response Government decision to establish National Consumer Agency (NCA) Consumer Protection Act 1 May 2007 –NCA established –Updated and consolidated consumer law –Transposed EU Unfair Commercial Practices Directive

6. NCA’s Role Five main functions: Research Information Enforcement Advocacy Education and awareness

7. Why Price Surveys? For many years….grocery market in Ireland was too concentrated, very little competition Perception that overseas markets and NIreland were cheaper and more competitive Consumers didn’t shop around; convenience first priority Market did not work well for consumers – requirement to “kick start” competition

8. Price Surveys (1) First NCA survey July 2007 – a Pilot Basket of 58 frequently purchased branded grocery products. Products & Retailers named in survey Results: Price matching; €2.20 (1.6%) difference on a basket worth €135. Purpose: highlight the lack of competition, empower consumers with information and encourage them to shop around

9. Price Surveys (2) 2nd NCA Survey February 2008 Full Basket Survey – included Branded, Private Label/Own Brand, Meat, Fruit/Vegetable Virtually no difference on branded; €0.73 on 72 products Own brand: 34% on 34 products Main competition provided by discounters

10. Price Surveys (3) Comparisons with Northern Ireland (April 2008 web based exercise) May, July, December 2008. Adjusted for VAT & Currency differentials Grocery –huge difference on baskets of common branded and private label: 25%+ Other goods also: magazines, electrical goods. Large differentials not justified by different costs of doing business, taxation or currencies 4 further Republic of Ireland price surveys (June, September 2008, February, June 2009) Many surveys by media also

11. Impact of Grocery Surveys Seismic shift in consumer behaviour over the last 2 ½ years. Price, not convenience, now the major driver for grocery purchases Combination of Factors – Surveys, Increased Consumer Awareness, Changed Economy, increased grocery shopping in N.Ireland Major retailer response to consumer action June 2009 results: significant competition on branded goods in particular (7% difference versus 1.6% two years earlier)

12. What can National Statistical Institutes do? Key Learning from NCA surveys: Meaningful information helps drive competition National Institutes have role to play; expertise in gathering statistical information. Initial Priorities: Domestic & adjacent (cross border) markets Focus: Product areas which are not covered by good price comparison surveys/websites Collaboration: with Consumer Bodies for dissemination of information Much more Much more can be done at National levelMore comparisons with

13. End Thank You