Vol. 248 No. 13
asked the Minister for Industry and Commerce if he will state the percentage increase in the price of cement recently sanctioned by him; if the increase was greater than that which the Taoiseach suggested as a guide; and if he will make a statement on the matter.
81.
asked the Minister for Industry and Commerce the percentage increase in the price of cement that may be attributable to the increase given to employees under the recent settlement.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 80 and 81 together.
The recent increase of 15s per ton —exclusive of additional freight charges —in the price of cement is equivalent to increases varying from 10.6 per cent to 12 per cent on the previous ex-works price depending on whether the cement is manufactured in Drogheda or Limerick and whether it is supplied in bulk or in bagged form.
The guidelines laid down by An Taoiseach relate to the extent to which increases in labour costs may be taken into consideration for compensatory price increase purposes.
The limit on wages cost increases of 30s per worker per week, or 7 per cent, can warrant varying percentage increases in prices as between firms depending on such factors as the level of wages, the nature of operations, the productivity of workers and the extent to which the industry is labour intensive.
In the case of Cement Limited there have been substantial increases in costs under other heads in addition to wages costs and, as I pointed out in reply to a question on 22nd July, 1970, the company will be recovering only about 63 per cent of total increased costs arising in Drogheda and about 83 per cent in Limerick. In view of this it is not possible to say the percentage increase in the price of cement that may be attributable to the wage increase given to employees under the recent settlement.
Surely this increase that has been sanctioned of between 10 and 12 per cent is in total breach of the guidelines set down by the Taoiseach in this House not so long ago? Will this policy be pursued when other price increases come up for consideration?
This is not out of line with the 30s and the 7 per cent as I indicated in a reply to a previous question. There is no change of policy from this point of view.
Would the Minister not agree that the increase of 12 per cent in this connection is in excess of what the Taoiseach recommended?
No. There were increases under other heads apart from wages.
