andMr. McQuillan asked the Taoiseach the estimated sum which would be required by a man with four children earning £10 a week to compensate for the increase in the cost of living since the eighth round wage increase and for the impact on the cost of living of the new turnover tax.
Ceisteanna—Questions. Oral Answers. - Cost of Living Increase.
8.
Between August, 1961, and August, 1963, the Consumer Price Index rose by 5.3 per cent. Between June, 1961, and June, 1963, the index numbers of average hourly and weekly earnings in transportable goods industries rose by 17.7 per cent and 14.9 per cent respectively.
These figures make it clear that, in recent years, wage increases have exceeded cost of living increases, resulting in an improvement in real earnings.
As regards the effect of the turnover tax, having regard to the fact that expenditure such as rent, rates, transport charges and insurance premiums are not liable to this tax, and assuming that the prices of purchased commodities will increase by 2½ per cent, it may be calculated that the outlay of a person earning £10 per week with four young children, and expending 80 per cent of his income on commodities affected by the tax, would increase by 4/- per week, or 17s. 4d per month. He will, however, be fully compensated for this higher outlay by the extra children's allowances, amounting to 19/- per month, payable to him from November 1st.
Is the Taoiseach aware that the commodities to which he has referred, commodities which must be purchased by the breadwinner, have gone up in price since last August and that practically all manufacturers, wholesalers and importers have already increased the price of their goods by more than 2½ per cent? Is the Taoiseach further aware that prior to the coming into operation of the turnover tax, the social welfare benefits given have already been swallowed up? Will the Taoiseach now say what extra remuneration by way of increased social welfare benefits he proposes to make available when the turnover tax comes into operation?
That is an entirely separate question.
It is not, Sir.
Did we hear the Taoiseach aright when he said that he assumed the expenditure of the person mentioned in the question would go up by only 4/- a week, on the assumption that the prices of purchased commodities will increase by only 2½ per cent?
Yes, I base my calculations on that.
It is obvious that you have been out of the country for some time. Has no one told you since you came back that prices have already gone up by more than 2½ per cent?
Is the Taoiseach aware that the price of flour has gone up already?
There are factors affecting prices other than the turnover tax, which has not yet come into operation, and which have affected prices, irrespective of the turnover tax.
One of these factors is the greed of manufacturers, wholesalers and business people generally who want to get in at the beginning.
That is an entirely different question.
Is it not a fact that the trade unions are preparing proposals for increases to meet the effect of the turnover tax?
That is another matter.
Is the Taoiseach prepared to take any steps to ensure that retail prices will not go up by more than the 2½ per cent of the turnover tax.
There are a number of questions on this matter to the Minister for Industry and Commerce to which he will be replying.