asked the Minister for Industry and Commerce if, in view of the fact that the price of pigs has dropped by as much as £2 per cwt. in the last three weeks, he will take steps to have the retail price of bacon reduced forthwith.
Ceisteanna—Questions. Oral Answers. - Bacon Prices.
asked the Minister for Industry and Commerce why a reduction in the price of pigs is not reflected in the retail price, as speedily as an increase in the price of pigs is followed by an increase in the price of bacon to the consumer.
With the permission of the Ceann Comhairle I propose to take Questions Nos. 7 and 8 together. The Deputy will recall that in reply to a question put by her on 25th May, 1955, I explained the arrangements by which the retail prices of bacon are controlled. In accordance with these arrangements, bacon prices are kept under constant review in my Department. Arising from such review, reduced maximum retail prices for bacon come into operation with effect from yesterday, 20th June, 1955.
I am satisfied that there has been no undue delay in putting into operation a price reduction as contrasted with a price increase.
Is the Minister not aware that the whole point of the second question is that there is no delay at all in passing on the increase in the price of pigs to the retailers; it is when the price of pigs goes down that the delay occurs. Furthermore, there is no justification for the delay in reducing the price. When pigs are bought, at least four weeks elapse before they are ready for bacon. I cannot understand why there is such a delay in passing on the reduction to the consumer, if the increase can be passed on.
I suppose this is not a question in which it is possible to satisfy everyone. Complaints reach me from time to time that I do not make Orders sufficiently speedily to enable those who sell bacon to get increased prices. On the other hand, the Deputy is now putting a question that suggests that the reductions do not take place as speedily as they might. We handled this whole matter with the utmost expedition. If prices go up, that matter is examined by the Prices Advisory Body and the moment its report is received action is taken. Similarly, the Prices Branch of the Department watch the price of pigs and if prices go down, then they take action with a view to bringing the price control mechanism into operation, based on the prices enumerated by the Prices Advisory Body. Quite frankly, this is not a thing which can be worked on a press-button principle or with precise mechanism for instantaneous operation.
What about when the price goes up?
No, not when the price goes up at all. I can produce a great deal of evidence, for the information of the Deputy, to show that grocers have complained over quite a period that we have not allowed the price to go up with the speed they think it should go up. In any case, this is a matter which you cannot adjust to the quoted price of pigs. Indeed, the price of the bacon the Deputy eats for breakfast tomorrow morning is not the price of the pig which was sold at yesterday's market. That bacon is made from the pig which was sold three or four weeks ago. Therefore, you cannot relate a particular pound of bacon to the particular price of a particular pig. When this price control mechanism comes into operation, usually three weeks elapse before the bacon is sold on the market and you have to trace what the orignal price of the pig was—quite a complicated piece of mechanism.
Is the Minister himself satisfied that there is a fair balance between the time that the price is passed on to the retailer, where it goes up or down, by the pig producer; and that the consumer gets as much fair play as the grocer gets from the bacon curer.
I am satisfied that if there is any balance in the thing at all it is in favour of the consumer.
Mr. Lemass
Does the Minister agree that most retailers of bacon consider that the maintenance of price control is keeping up the price rather than allowing it to come down, that the price would fall more if price control were taken away?
That is an entirely separate question.
Is the Minister aware that four weeks ago, when the price of bacon went up, the price of pigs came down and there was great complaint from pig producers?