asked the Minister for Industry and Commerce whether he is aware that the cost of meat and other household necessities is rising rapidly; and whether he will impose a stay on all such price increases pending investigation.
Ceisteanna—Questions. Oral Answers. - Price Increases.
61.
I am aware that meat prices have risen recently. These prices generally move in sympathy with prices paid for cattle and sheep. I am not aware of a rapid rise in prices of household necessities.
I do not consider that any extension of the present form of price control is necessary to cope with present circumstances.
Is the Minister aware that the price of meat went up two years ago when cattle prices reached an all-time high, that they did not come down last year when cattle prices reached an all-time low, and that they are now going up again when the price is almost as high as it was two years ago? Would the Minister explain how this latest increase is justified?
I do not think the Deputy is correct in what he says.
I know I am correct.
I do not know if he intended to say it, but he did say that prices went up when the price of cattle went up and did not come down again.
That is correct.
That is not correct. If the Deputy means they did not come down as much proportionately as the price of cattle, that is another matter, but to say they did not come down——
They did not come down generally throughout the country last year at all.
There has been as the Deputy is probably aware, some investigation from time to time into this matter by the Prices Advisory Committee. There was one at the end of 1965. There was one in 1966. All the investigations that have taken place by my Department indicate that prices in butchers' shops rise when the price of cattle or sheep rises and come down when these prices come down, but they do not always react upwards immediately and do not come down as much as cattle and sheep prices come down or, indeed, go up as much as those prices go up. In other words, there is a certain element of carrying in the price.
I have never noticed it.
Is the Minister aware that the increase in the price of meat represents an increase of £3 per cwt in the price of cattle?
No, I am not so aware.
Look up the figures.
62.
asked the Minister for Industry and Commerce if, in view of the possibility of widespread price increases following devaluation, he will now consider it desirable to freeze all prices and dividends at predevaluation levels pending investigation of proposed price increases.
Action on the lines suggested by the Deputy would be impracticable. In discriminate freezing of prices, even if practicable, would cause serious unemployment and indiscriminate freezing of dividends would penalise investors in Irish concerns as against persons who invest their money abroad.
As I have indicated in a public statement all necessary steps are being taken to ensure that devaluation does not result in unjustified price increases or profit-taking.