asked the Minister for Industry and Commerce the reasons for the recent increase in the price of bread.
34.
Ceisteanna—Questions. Oral Answers. - Increase in Price of Bread.
33.
asked the Minister for Industry and Commerce whether his attention has been drawn to the widely expressed public disquiet on the subject of the latest increase in the price of bread; and whether in view of the fact that such an increase must strike hardest at the living standards of the lower income groups, such as old age pensioners and social welfare recipients, the Government will take action to reduce the price of bread at least to its level previous to this increase.
With the permission of the Ceann Comhairle I propose to take Questions 33 and 34 together.
Bread prices were freed from control in 1957 and I am not, therefore, in a position to give precise reasons for the recent increase. I understand, however, that increased labour costs have resulted in increased costs of production in the bakery industry and that the recent reduction in the price of bakers' flour has not been sufficient to offset these increased costs. While, therefore, I share fully the concern of Deputies for the poorer sections of the community, there are no grounds for assuming that re-introduction of price control would result in the price being reduced to its previous level.
However, I am keeping the situation under close observation and I will, of course, use the powers conferred on me by the Prices Act, 1958, if circumstances should seem to me to arise which would justify such a course.
Is the Minister now prepared to set up this inquiry which he is empowered to set up under the Prices Act, or is he satisfied that the recent increase in the price of bread is justified?
I have asked the Association of Master Bakers to supply me with the relevant figures to justify the increase. When I have examined these figures, I can decide on what action I should take.
Can the Minister reconcile the increase in the price of bread with the fact that there has been a decrease in the price of flour?
There was a wage increase of 27/6d. a week for male bakers and confectioners and 25/- a week for others. Offhand the Master Bakers' Association attributes the increase in the price of bread to the increase in wages.
(Interruptions.)
Might I inquire of the Minister whether it is not true that an increase of 1/2d. in the price of the 2-lb. loaf is the equivalent of an increase of 7/6d. per sack of baker's flour, and if that were extended to the flour consumers of the country, it would represent £1,000,000 per annum, and if extended solely to bread, it would represent a charge of approximately £½ million per annum on the cost of the people's bread? On what positive basis can that be justified, if it be true, if there is a reduction of 3/6d. per sack of flour to the baker?
The result of my inquiry will, I hope, produce sufficient data for me to indicate what action I should take.
Is the Minister aware that the price not only of bread, but of everything, has increased, and will he or the Taoiseach consider the lower income groups when they realise that fact?
Does the Minister not consider that in view of the public interest being concerned a public rather than a private inquiry would be justified?
A public inquiry might be more expeditious, but, in any event, if a public inquiry appears to be necessary, I shall not hesitate to have it held.