asked the Minister for Industry and Commerce if he will state (1) when the Prices Advisory Body reported on the application of Irish tobacco manufacturers for sanction for higher prices for cigarettes and tobacco; (2) what recommendation was made by the Prices Advisory Body, and (3) what action was taken by him on the recommendation.
Ceisteanna—Questions. Oral Answers. - Tobacco Manufacturers' Application.
On 3rd May, 1951, the Prices Advisory Body recommended to my predecessor that an application made in April, 1951, by one firm of tobacco manufacturers for an increase, based on higher costs of tobacco, higher wages and increased packing costs, of 1d. per 20 in the cheaper classes of cigarettes and an increase of 2d. per 20 in the remaining types, should be granted. This recommendation was accepted by me, and the firm concerned was so notified on July 11th, 1951. The firm concerned was not prepared to put the sanctioned increases into operation unless other tobacco manufacturers increased their prices correspondingly. In September and October, 1951, the remaining tobacco manufacturers applied for increases of 1d. per 20 in the cheaper classes of cigarettes and 2d. per 20 in other types, including the "popular" types. All the tobacco firms made applications for corresponding increases in pipe tobaccos. The Prices Advisory Body recommended on the 17th October, 1951, that these applications should be granted. Maximum Prices Orders were made by me with effect as from the 5th November, 1951, authorising the increases recommended by the Prices Advisory Body in the prices of the cheapest class of cigarettes and in the prices of pipe tobaccos. Price control on the more expensive brands of cigarettes was discontinued. I decided at that time, however, not to agree to an increase of more than 1d. per 20 in the "popular" brands of cigarettes, except in the case of the firm mentioned in the first sentence of the reply. This firm, however, decided to keep its price in line with competitors. This increase in price was an interim measure, as the report received from the Prices Advisory Body made it clear that a further increase would be necessary later to offset increased costs.
In February, 1952, further applications were made by tobacco manufacturers for an increase of 1d. per 20 in the price of the "popular" brands of cigarettes. As this increase had already been recommended by the Prices Advisory Body in October, 1951, I decided to grant the application with effect as from 4th April, 1952, when the increases in prices of cigarettes and tobaccos necessitated by the Budget also came into operation.
Was it mandatory on the Minister to accept the recommendations of the Prices Advisory Body in this or any other case?
As I have indicated in my reply, in relation to the "popular" brands of cigarettes the Prices Advisory Body recommended that an increase of 2d. per packet of 20 should take effect as from October of last year. I did not accept that recommendation and I authorised an increase of one penny at that time and postponed the increase of the second penny recommended by that body until April of this year.