asked the Minister for Industry and Commerce whether he has received a letter from the Irish Congress of Trade Unions calling on him to introduce effective machinery for the control of prices and the maintenance of reasonable order and stability in the price structure; and what action he intends to take following receipt of this letter.
Ceisteanna—Questions. Oral Answers. - Control of Prices.
15.
I have received the letter to which the Deputy refers. It goes without saying that I share the views of the Irish Congress of Trade Unions as to the necessity, in the national interest, of maintaining reasonable order and stability in the fields of wages and prices. I believe that free competition provides the most effective means of controlling prices and that statutory price control is effective and practicable only in times of commodity scarcity, or when rationing is in operation.
The Prices Act, 1958, gives power to take action in conditions of national emergency or the absence of free competition or the existence of causes within the control of manufacturers or labour costs which unduly increase commodity prices.
I have used the powers given by this Act when I considered it necessary and will continue to do so.
Does the Minister really appreciate the concern of the Irish Congress of Trade Unions in this matter? Does he also appreciate the efforts they have made, particularly in the past five or six months, to ensure stability not alone in prices but in wages? Would he not, therefore, accede to the request made to him in this letter and employ the machinery for price control which is available to him?
I readily acknowledge the efforts being made by the Irish Congress of Trade Unions towards achieving stability in wages. In reply to the second part of the Deputy's supplementary, he is probably aware from Press reports that prices advisory committees are sitting in relation to certain commodities, for example, jams and marmalades, canned and processed foods, and they are expected to report, respectively, on 31st July and 31st October. In the meantime, investigations are being carried out by officials of the Prices Branch of my Department into the costs of other commodities. I believe the action I am taking, in so far as remedial action is necessary, is being taken in the best interests of price stability.
The Minister has a responsibility in all this. I suppose the Minister has most of the information but the information he is giving now with regard to price increases that are being investigated is also available to the Irish Congress of Trade Unions. Despite that, the Congress have expressed their concern to the Minister, and there is the inference in that letter that the wage agreement cannot obtain for two years if prices continue to go as they are. I think the Minister should accede to their request. The investigation of the price increases in different commodities mentioned by the Minister is important——
Order; these are all surplus to questions.
The Minister might like to give a short dissertation on inflation.
The Minister must know that there is an inference here that the wage agreement may not be maintainable for the period agreed between the employers and the employees unless the Government are prepared to do their share and contribute towards the stability of the country by saying that there will not be any undue increase in prices of commodities.
When the wages agreement was negotiated between the Irish Congress of Trade Unions and the Federated Union of Employers and their allied bodies it was envisaged that as a result of increased costs of production, increasing wages, being a factor in the cost of production would have an effect on prices. It is my belief, and I think it is the belief of the House as expressed on all sides when the Prices Act was passed in 1958, that the free play of competition is the best and most effective means of controlling prices. There is a great number of commodities as the Deputy knows in respect of which it would be totally impracticable to attempt price control, for example, clothes, tea and other commodities of that nature because of the wide range of prices.
The Government, and in particular the Department of Industry and Commerce, have been making efforts in recent years to cut down the cost of production, to make industry more competitive by way of technical assistance grants and other advisory schemes for industrial efficiency at management and labour level and also in the distributive sector. I believe with full participation by all the elements in production and the facilities available and by the free play of competition, these will be the most effective means of maintaining the the competitiveness of industry and thereby maintaining price stability.
This is becoming a debate.
I was asked a question on that.
This will be my last question. The Minister successfully investigated an increase in the price of sugar and discovered that the increase was unwarranted, and took steps to see that the increase proposed would be reduced. I therefore suggest to the Minister that he should have investigations made in respect of many more of the other important commodities. He could, in fact, employ the machinery available to him to allay the fears of the public in respect of prices and, more important still, ensure that there will not be any undue increases in prices. It may be all right to say that by dint of competition prices will reach stability, but everybody knows that in respect of the majority of commodities there is——
This is clearly a debate.
I will just reply briefly. Apart from the Prices Advisory Body, investigations are going on in the Prices Branch of my Department into the cost of goods and services to the extent of about 15 items. I think I am doing what is possible and practicable in the circumstances in order to achieve the results mentioned by the Irish Congress of Trade Unions.