asked the Minister for Industry and Commerce if it is his intention to make use of his powers with regard to price control in order to take special steps with a view to ensuring that, following the introduction of the 2½ per cent turnover tax, the prices of goods to consumers will not be raised by more than 2½ per cent.
Ceisteanna—Questions. Oral Answers. - Turnover Tax: Control of Prices.
14.
The circumstances in which my powers in regard to price control may be exercised are laid down in the Prices Act, 1958. I have no reason to believe that the introduction of the 2½ per cent tax will bring about the situation envisaged by the Deputy.
Does the Minister mean that he is not going to take special measures to ensure that there will be no undue increase in prices?
I said that I had no reason to believe that any special measures were required.
Are we to take it therefore that the Prices Act, which the Minister said would be put into a pigeonhole, is still there and will remain there for all time?
I never said it would be put into a pigeonhole.
Is it not a fact that the Government have announced to traders that they need not stick exactly to 2½ per cent on every commodity and that they can put more on one commodity, if they like, and if that is so, would it not be possible for comparatively large increases to go on some commodities?
Traders have always done that.
I believe that the ordinary rules of competition will apply to ensure that no excessive increase will take place on any commodity.
If it is shown that the increase is more than 2½ per cent, will the Minister act?
If circumstances require any action under the Prices Act, I will take it.
If prices are more than 2½ per cent, will the Minister invoke the Prices Act?
If a firm can afford to give 2/- in the £ bonus out of their profits to all customers, what profit have they?
In view of the Minister's admission last night that the price of electricity will increase——
I did not admit anything last night.
I am talking about the Minister for Finance. The same should apply here. He admitted that the cost of electricity will increase.