asked the Minister for Finance whether he is aware of the forecast of the Economic and Social Research Institute in the quarterly report of a continued rise in food prices in 1973; and whether he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Food Prices.
14.
I would point out to the Deputy that the views published in the Quarterly Economic Commentary are not those of the Economic and Social Research Institute. The authors of that publication are solely responsible for the views expressed.
The full quotation of the reference to which the Deputy draws attention is as follows:
Food prices seem likely to rise further in 1973, although not so rapidly as in 1972. Being linked to international conditions food prices are largely beyond the short-term control of the Irish authorities.
I would agree with the general tenor of these remarks. Market conditions abroad for cattle and beef are expected to continue favourable during 1973. On the other hand, certain factors of a cyclical nature which contributed to the sharp rise in food prices in 1972 should be absent next year.
Will the Minister agree that probably the major item, the explosive factor, in the present prices crisis, which the Minister can read about any day in the papers, is obviously the introduction of VAT? The Minister may have seen the cartoon in today's paper which sums up the position, the denials that VAT contributes to price increases and yet VAT obviously in everybody's experience is being used as the excuse, basically, for all the price increases.
I think I would question the assumptions in the Deputy's question. First, I would question that VAT is of itself contributing to any noticeable degree to an increase in prices. As regards the second part of his question, which was that it is being used as a cover for increasing prices, I would concede that there is some evidence for this but I would suggest that the efforts in this regard have been much less successful than many people thought they would be due to a number of factors but primarily due to the vigilance of the consumer, which I hope will be continued.
Could the Minister say if the volume of complaints has increased since the introduction of VAT?
I take it the Deputy means the volume of complaints about price increases in general?
Yes.
I could not say offhand but my guess would be yes, because the Deputy will appreciate that we urged the public to do this, to be especially vigilant at this time and to report evidence of attempts to use VAT to increase prices unjustifiably. I would expect that the volume of complaints would have increased substantially as a result.
As the Minister responsible for the introduction of VAT would the Minister agree that the report made by certain consumers—he referred to the necessity of vigilance on the part of consumers —would have been helped to a great extent had there been a correct description of the contents of packages in supermarkets and elsewhere? As the law does not make it compulsory to give us this correct description of weight, quality and so on, it means that the consumer is not helped to make the best bargain. Would the Minister agree that there has been a lamentable delay in the introduction of suitable legislation since it is over a year since the Minister promised legislation of this kind? Now we see it is still not on the statute books and is promised for later next year.
Whatever about the desirability of legislation of that kind I do not think it can be said that its absence has been a substantial factor in any complaints that have been made in regard to price increases alleged to arise out of the introduction of VAT.