asked the Minister for Industry and Commerce if he will state whether the question of permitting the increase in the retail price of sugar was submitted to the Prices Advisory Body; and, if so, what the decision of that body on the matter was, and if not why not, and if he will further state whether he satisfied himself that Comhlucht Siúicre Éireann Teoranta could not have borne the increase if it was necessary.
Ceisteanna—Questions. Oral Answers. - Increase in Price of Sugar.
asked the Minister for Industry and Commerce if he will state if he referred to the Prices Advisory Body the question of whether or not the price of sugar should be increased before he sanctioned the recent increase of ½d. per lb.
With the permission of the Ceann Comhairle, I propose to answer Questions Nos. 9 and 10 together.
The retail price of sugar which prevailed up to the 18th May was less than the economic price and was possible only because a levy was collected in respect of the sugar content of exported commodities. Circumstances in the export markets have changed and as from the 1st July the two-price system will be discontinued. An adjustment in the retail price was consequently necessary as I was satisfied that Comhlucht Siúicre Éireann could not bear the loss of revenue involved. The considerations affecting the export trade in sugar goods were known to my Department but would not normally come within the purview of the Prices Advisory Body. Consequently I did not consider it necessary, quite apart from other considerations, to refer the case to that body.
In fixing the new price I took into account the higher cost of beet, wages and freight.
Can the Minister state what were the profits of the sugar company during the last three years and whether he took those profits into account when the increase in the price of sugar was determined?
The accounts of the sugar company are published in the Dáil. I am quite satisfied that they are not making excessive profits. On the contrary, the sugar company are satisfied that their profits are not large enough to meet their own commitments. Might I mention also that the present price of sugar in this country is lower than the unsubsidised price of sugar in any other country in Europe?
Does the Minister not consider that before increasing the price of an essential commodity such as sugar it would be desirable to have the matter investigated publicly by a body such as the Prices Advisory Body?
As I have explained, the circumstances were such on the export market that it was possible for us to levy 2d. per lb. On all sugar used in the manufacture of goods for export. That was possible because of sugar rationing in Britain. Now that rationing restrictions have been greatly reduced in Britain—and it has been announced that rationing is going to end—it is no longer possible for us to operate the two price system and that export levy must stop, otherwise trades such as those engaged in the manufacture of condensed milk and chocolate crumb would be gravely affected. These manufacturers produce these goods for export and must get an economic price. Consequently, the additional revenue which the sugar company was getting from the levy upon the export of sugar has ceased. We now have to put all sugar on the basis of an economic price. There is no question of any investigation by the Prices Advisory Body in that regard. They are not familiar with the question of policy which made it possible to operate the two-price system in the past and which makes it necessary to terminate it now. The only change that has been made is that we adjust the revenue of the sugar company to the loss ofrevenue in relation to that charge—to the loss of revenue from the dropping of the export levy.
How much is involved as far as the consumer is concerned in a full year?
The home consumption is about 100,000 tons.
Without discussing the merits or the demerits of the case, would the Minister not agree that all these arguments for and against ought to be given publicity at a public sitting of the Prices Advisory Body if the people are to have any confidence at all in that particular body?
The Prices Advisory Body are concerned only with prices. We are concerned with export policy. The desire of the Government to maintain important export trades in which thousands are employed is not a matter for the Prices Advisory Body but for the Government.
When the Minister mentions 100,000 tons, is that in respect of retail consumers—domestic consumers?
No. A high proportion of that would be used by manufacturers.
Could the Minister say what the domestic consumption is?
For domestic consumption? I do not know.