asked the Minister for Supplies if he is aware that a firm manufacturing soap has increased its profits in the past year by over 100 per cent.; whether his Department institutes inquiries in cases where firms manufacturing essential commodities in short supply show unduly large profits; and, if not, whether he will undertake to do so in all such cases.
Ceisteanna—Questions. Oral Answers. - Soap Manufacturers' Profits.
The profits of manufacturers in the soap trade are the subject of investigation by my Department and the possibility of fixing maximum prices of soap by Order is being examined though there are technical difficulties to be overcome. I am aware that some soap manufacturers made much increased profits in the past year and, pending any changes which may be made in the price of soap, arrangements have been made to adjust the position in the case of these manufacturers by a reduction of 20 per cent. in the controlled price of another essential commodity produced by them, viz., candles.
With regard to the second part of the Deputy's question, the profits of manufacturers of all essential commodities are subject to investigation and where unduly high profits are disclosed, additional measures for the restriction of profits are taken.
Has the Minister taken any action in regard to the particular firm to which I refer in my question?
The firm itself, recognising that its profits had exceeded what had been anticipated at the beginning of the year, reduced the price of candles by 20 per cent. in order to adjust the position.
Does the Minister not consider that it is unfair for a firm to have such profits considering that this is a rationed commodity?
It is, as I explained here, not possible for any firm to forecast at the beginning of the year exactly what its profits will be. A firm cannot even forecast in present circumstances what its output will be. Any losses revealed at the end of the trading period have to be recovered in the subsequent period, and that process is going on in relation to all firms each year.
They made sure that they would have 100 per cent. profit.
In the previous year they made a substantial loss. The Deputy does not take that into account at all.
They made 100 per cent. profit this year.