asked the Minister for Industry and Commerce if, in view of the widespread public concern over the rising cost of living, he will consider a national price freeze.
Ceisteanna—Questions. Oral Answers. - National Price Freeze.
82.
The National Prices Commission, which I established recently to advise me in relation to prices and charges, has made no recommendation to me about a national price freeze nor do I contemplate such a price freeze.
Is the Minister not aware of the danger to the national wage agreement of increasing costs in practically every commodity and will he keep an eye on the position to make sure there is no worsening of it?
I am endeavouring to do that but wherever there are manufacturing cost increases, there must be compensatory increases in prices. In relation to all of the increases that have taken place in recent years, I can say that the compensatory increases allowed to manufactures accounted only for about two-thirds of the cost increases and the balance has had to be met by improved management and output. It would be difficult to talk about price freezes on the one hand but not to talk in general about freezes.
The Minister is aware that there is a freeze on wages but is he not aware that the price of commodities has been increasing by a percentage similar to the increases granted in wages as if wage costs were the only costs involved in production?
I cannot say that the price increases that have taken place during the past few years have been parallel strictly with wage increases. Certainly, during the year 1970 one of the biggest complaints of manufacturers was that they were not allowed to increase prices in line with wage increases.
They had no cause for complaint in 1971.