Robinson warns of inflation risk from new euro-rules on Pint
Ken Robinson MLA, Ulster Unionist Assemblyman for East Antrim, warned today that EU moves to ban the traditional British Pinta and loaf of sliced bread could have a serious impact on price inflation if they were allowed to go ahead.
“These new Eurloland rules which are set to go through the European Parliament this week are an effort of harmonise packaged food throughout Europe. Under the rules, which replace British imperial measures with a European metric system, the pint-sized milk carton would be cut to half a litre. The danger in that is that with 68 millilitres fewer in the pack, the price will remain the same.”
“This temptation to profiteer by producers will have more serious consequences than just short-changing customers, however. It could be a spark that ignites price inflation. In the last six months the British economy has responded well, with inflation dropping from 2.5% to just 2%. This is just the sort of thing that could set it back.”
“In addition the cost of replacing the traditional pint sized glass bottle would be a prohibitive cost for the dairy industry. The producers would have no other option but to pass on this increased cost to the consumer further fuelling price inflation.”
“Harmonisation is all very well but not if it risks inflation. I still recall how switching from the old sterling system to decimalization led to a massive hike in inflation. This tinkering with what would be better left alone could do the same. I am a supporter of the European Union but the European Union should not be about enforcing standardization on issues like this. It should be about fostering trade and expanding opportunities,” said Mr Robinson.