Taoiseach Leo Varadkar has ruled out introducing price caps on groceries amid concerns it could lead to rationing and shortages.
He also ruled out the introduction of mortgage interest relief but vowed that the tax package in this year’s Budget will be "as generous as we can afford".
During Leaders’ Questions in the Dáil, Labour’s Ged Nash called on the Government to examine whether price controls could be put in place to tackle rising prices for consumers.
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He said: "Over the last year alone, food prices rose by over 13 per cent. Milk [is] up nearly 25 per cent, butter [is] up 21 per cent, eggs [are] up 20 per cent.
"Lower and modest income families are at the very sharpest end of the naked price gouging that's going on."
Mr Nash argued that CSO data shows that Irish companies are recording profits and that while this is healthy, they should not be allowed to record "hypernormal profits".
He continued: "What will you and your Government colleagues do to protect the people?
"Will you ask the Competition and Consumer Protection Commission to carry out a review of competition high prices in the Irish grocery market?
"Will you at the very least empower the commission to undertake a review of basic grocery prices to establish if price controls are in fact required?"
Mr Varadkar acknowledged that "prices are rising and rising rapidly in Ireland" and that "prices are rising faster than incomes". However, he argued that the Government expects inflation to fall throughout the year.
The Taoiseach said that he would be "reluctant" to introduce price caps as it could lead to other problems.
He said: "When it comes to price controls, [I] would be reluctant to do that. Legislation does exist that allows price controls to be imposed in certain circumstances by the Minister of Enterprise, Trade and Employment.
"We don't have a good experience with price controls in this country and, indeed, around the world.
"You can control retail prices, but you can't control wholesale prices. You might be able to tell the small shop owner or the medium-sized shop owner what they can sell groceries for, but you can't control the price at which they buy them from the wholesaler. The same thing applies to the petrol pump.
"That's why it's been a long-standing experience both in our history of the country, and indeed examples around the world, of where price controls have been imposed. You then run into supply problems, shortages, rationing. [I] don't want to go down that road."
Mr Varadkar added that prices in supermarkets are on the agenda for the Government’s next retail forum meeting.
Elsewhere, Mr Varadkar once again ruled out the introduction of mortgage interest relief before the Budget.
He told Sinn Féin leader Mary Lou McDonald that while it can be considered as part of the tax package to be unveiled in October, other options will also have to be explored.
The Taoiseach added: "When it comes to the next Budget, there will be a tax package.
"It will be as generous as we can afford.
"But we will have to take into account all of the other suggestions that are put forward for tax concessions."
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