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Dáil Éireann debate -
Thursday, 28 Nov 1968

Vol. 237 No. 9

Ceisteanna—Questions. Oral Answers. - Price Increases.

128.

asked the Minister for Industry and Commerce the number of applications received in his Department for increases in prices since the recent Budget; and if he will give details.

My Department has received 18 notifications of proposals to increase prices since the 5th November, 1968. It would be contrary to normal practice to disclose details of notifications under examination but I can say they have no connection with the Budget.

129.

asked the Minister for Industry and Commerce whether his Department are maintaining a check on price increases affecting the cost of living index; whether he forecasts any upswing in prices within the next few months; and if he intends to have any discussions with interests involved.

The answer to the first part of the Question is "Yes".

Factors such as increased cost of raw materials, which are mainly imported, necessary taxation and increased labour costs may make some price increases necessary within the next few months.

The present practice of having discussions, as necessary with interests involved will be continued.

130.

asked the Minister for Industry and Commerce if he is aware of the growing unease among the public at the increases in prices which have taken place since the Budget; and if the Government have plans to stabilise prices.

If employment is to be maintained, it is necessary to allow increases in prices to compensate for increased costs over which manufacturers and importers have little control. These include the increased cost of raw materials, which are mainly imported, and of labour, and necessary additional taxation.

As I have already stated in reply to similar questions, I will continue to use my powers under the Prices Acts to ensure that prices are not increased unnecessarily.

May I suggest to the Minister that his price control order is not adequate to deal with increases in prices? As I tried to explain last week, increases are occurring indirectly because the same weight is not being maintained in packaged goods. These are the kind of increases that are taking place and does the Minister not agree that such indirect increases are having a most undesirable effect throughout the country as a whole?

I am certainly not aware that there are any examples of substantial increases of the kind the Deputy has referred to—by reductions in volume or weight. I am not aware that this is leading to any substantial increases in cost. I deny what the Deputy suggested in the earlier part of his supplementary which was, as I understood it, that the prices control order was not operating to prevent price increases. If he means that it is not operating to prevent price increases at all, that is true. It is necessary to allow increases in a number of cases because of increased costs of various kinds over which the manufacturers have little or no control, and failure to allow these increases would mean the closing down of firms and considerable consequential unemployment.

The Minister has not answered my question. He has not stated what powers he has to prevent these indirect increases.

If the Deputy will supply me with details, I will have the matter investigated. The Deputy has twice referred to this——

The Minister last week agreed that it was happening.

Presumably the Deputy has such knowledge and, indeed, today he indicated that it is happening on a substantial scale. I have no knowledge of these and if the Deputy would give me the details on which he bases these allegations——

Did the Minister not indicate that legislation would be brought in to deal with this matter?

We cannot have a debate on this matter.

Did he not say there would be legislation to control the labelling and the contents of these packets?

It was not in relation to price increases but to consumer protection.

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