asked the Minister for Transport and Power if Bord Fáilte authorised the increases in hotel tariffs announced for 1972; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Hotel Charges.
14.
Prices for accommodation and table d'hote meals in hotels are determined by the individual hoteliers who furnish particulars of their maximum prices to Bord Fáilte for inclusion in the official hotel guide, which is published annually. The prices are not subject to the prior approval of Bord Fáilte but once they have been published in the official guide they may not be exceeded during the year to which the guide relates without the board's consent.
I am informed by Bord Fáilte that a comparison of the hotel prices in the 1972 guide with those for 1971 showed that 42.4 per cent of hotels have not increased their prices and 3.6 per cent have reduced their prices. The remaining 54 per cent increased their prices, the overall average increase being 12 per cent. In almost half of these hotels, the increase was less than 10 per cent.
The hotel industry in common with other sectors of the economy is subject to the pressures of rising costs. I am aware also that some hotels have improved their standards and this must be taken into account in any comparison of prices.
Is the Minister stating they do not have to get permission to increase prices?
They may not increase their prices beyond the level given by them to Bord Fáilte for inclusion in the guide without risk to their registration the following year.
Are they not subject to a prices advisory committee or some body like that?
That is another day's work.
Did they get permission to increase these prices?
The Deputy will appreciate that there is at the moment a commission established under the aegis of the Minister for Industry and Commerce to deal precisely with this matter.
This does not alter the fact that the prices have been increased and have been justified by inclusion in the special booklet issued by Bord Fáilte.
One thing that will ensure that prices will be at the minimum possible level is the difficulties facing the hotel industry.
Is the Minister being responsible in allowing that situation to develop?
Action has been taken by the Minister for Industry and Commerce who is responsible for prices, and a special commission has been established.
Would the Minister have an inquiry into some of these prices which were completely unjustified and certainly exorbitant?
The interesting thing about the hotel industry last year was that the good hotels that gave value, were price conscious and cut prices to the bone, and marketed properly, did very well; the other hotels that did not act accordingly did not do well. The law of supply and demand always works out in this type of situation.
Should the Minister not be taking action to ensure that prices are not exorbitant?
Could I ask the Minister if Bord Fáilte have stated, or if the Minister is aware, what is the accepted gross profit margin for, say, food and what is the gross profit margin hotels expect on bedroom accommodation?
That is a separate question.
The Deputy would want to put that question down separately.
I shall do that.
I shall be very glad to answer it.