Vol. 231 No. 9
asked the Minister for Industry and Commerce if he will outline the criteria by which his Department have permitted a 10 per cent increase in the price of domestic fuel in the light of the Government's statement concerning the minimal effects of devaluation on the cost of living.
59.
asked the Minister for Industry and Commerce the quantities of domestic coal which were in stock on the date of his acceptance of the price increases; and what measures he is taking to guarantee that these stocks are offered to the public at predevaluation prices.
I propose, with your permission, a Cheann Comhairle, to take Questions Nos. 58 and 59 together.
Importers are not obliged to notify me in advance of price increases unless they propose to increase the margin of profit they take. Coal importers did in fact give me advance notice of price increases due to devaluation and on the basis that they were not increasing their margins of profit I raised no objection.
It appears that coal importers held stocks, sufficient for one to two weeks' requirements, of American, German and Belgian coal at the time they gave me advance notice of their proposal. These were the coals they proposed to increase in price. It also appears that where these stocks were paid for before devaluation they are being sold at predevaluation prices; where they were not paid for they must now be paid for at the new rate of exchange, making a price increase necessary.
I should say that the price of Polish coal, which is largely used, has not been increased.
Could the Minister say why so little English coal is used? Why is so much of the other types being sold? Is the Minister aware that coal merchants are charging 2/-per bag extra and they do not say on the bag what the country of origin of the coal is? The fact is that all coal has gone up for the past fortnight by 2/- per bag. Is the Minister further aware that coal merchants have produced a letter from the Minister's Department saying they are entitled to charge this extra 2/-?
I am not aware of the letter they produced, but I am quite certain they have not produced a letter from my Department stating that all coal may be increased in price. The increases authorised are the increases I have mentioned. They relate to American, German and Belgian coal. The total imports of steam coal, including household coal, come out at approximately 40 per cent USA, 30 per cent Polish, 20 per cent German and ten per cent British.
Is that not rather peculiar?
It is a question of price and economics.
Does the Minister contend that this ten per cent increase means the profit margin is exactly what it was before devaluation?
Yes.
God help us then where other commodities are concerned if it is going to be ten per cent on coal.
There is a slight complication in one case in that a large quantity of coal which had arrived and was being distributed at the predevaluation price has to be paid for now at a higher price.
Would the Minister say what machinery he employs to ensure this was not an unjustifiable increase?
The price control machinery available to me is sufficient to verify that the facts adduced by the coal importers were, in fact, correct. Let me add, however, that if there was any evidence of a practice, as has been suggested, I think, by Deputy Tully, that British coal was being offered at a higher price, I would certainly pursue the matter.
Would the Minister try to get some of his inspectors to find any coal being sold under the new price which takes in the 2/- increase? He will then know whether or not the full price is being charged for all coal. Would he have the matter further investigated because I believe there is a fiddle?
I had a complaint made to me today by a colleague in Government and I am having the matter pursued.
Does 60 per cent of our coal supplies come from countries affected by devaluation?
Roughly 40 per cent from the United States, 20 per cent from Germany and 30 per cent from Poland. The price of Polish coal has not increased.
Last week I had a phone call from a person in East Wall Road who told me that on a small lot of coal costing 2/-, there was an increase of 4d. The Minister should ensure there is no exploitation.
This is being done as far as it can be done, but it is much easier to follow up these allegations if I get specific complaints.
An investigation into who is buying British coal and who is buying foreign at the present time would be very interesting.
