asked the Minister for Industry and Commerce if in order at least to seek to maintain the current living standards of the public generally he will consider establishing a prices increase tribunal to ensure that all proposed price increases of essential goods must be justified before such increases will be permitted.
Ceisteanna—Questions. Oral Answers. - Prices Tribunal.
22.
I have no evidence that it is the intention of traders, as implied in the Deputy's question, to increase the prices of essential goods by margins in excess of those justified by recent increases in wages, salaries and other costs. I have on several occasions informed the House as to the circumstances in which my powers in regard to price control may be exercised.
Does the Minister not agree it has been made generally clear they will try to recover most of the 12 per cent paid in wage and salary increases? While the increased prices may be justified in some cases, would the Minister not agree they should be justified in public so that the public will be able to weigh their merits?
I do not agree there is a general intention on the part of people to raise prices. I do know of some firms who have tried to absorb wage increases by greater efficiency and economy on the part of themselves and their staffs. In respect of such commodities over which I have effective control, I usually seek justification for price increases, satisfy myself as to whether they are unduly high or not and if they are, take action.
What evidence has the Minister that these increases are justified? What investigation does the Minister make?
I make investigations within my Department. I have a Prices Section. They seek information from manufacturers who cause such price increases. They get a breakdown of the different elements that would add to prices. Having examined them, they are presented to me, and I take my decisions on the results.
Surely, if as happened within the past three or four months, workers prove to the hilt a case for 12 per cent wage increase, there should be some machinery to ensure there are no undue increases in prices?
As I have said a hundred times—it is generally agreed policy—so long as there is effective competition in the supply of goods, competition is the best form of price control.
Does the Minister agree that where a firm has a monopoly, they are justified in increasing the price of their goods by 12 per cent to compensate for a 12 per cent increase in their workers' wages?
I would say no, definitely.
Is the Minister aware that that is what has happened?
I am not.
Then the Minister is about the only person in the country who is not so aware.
Would the Deputy give me particulars?
Take the laundry industry in this city only this week.
An Tánaíste
That was the Fine Gael dirty linen being washed.
It would be a job to wash some of yours.
The Minister said that a number of concerns would absorb the turnover tax. I accepted that until last week. Is the Minister aware that those same firms have put on the turnover tax and added a further increase in the last week on items ranging from marmalade and jams to peas, biscuits, cocoa and so on? All these have now gone up by 18 to 25 per cent. I shall give the Minister the price list circulated in the past ten days. Will the Minister say now he is prepared to accept that competition will keep down prices in these circumstances?
In respect of some of the commodities mentioned, there were no increases in price over periods when there were two rounds of wage increases.
Question No. 23.
Is it not a fact that the items I have mentioned have gone up by 25 per cent as a result of the turnover tax, in spite of the fact that the Minister said the increase would be no more than 3½ per cent or four per cent?
The Deputy will please resume his seat.
This idea of giving money to compensate for increases is merely to fool the public.