asked the Minister for Industry and Commerce if he will indicate the action, if any, his Department have taken in relation to the problem of coal prices in County Donegal.
Ceisteanna—Questions. Oral Answers. - Coal Prices.
1.
Recent complaints of alleged overcharging for Polish coal in County Donegal were investigated by an inspector of my Department. Up to the beginning of this year coal merchants in County Donegal were selling coal, which they had imported from Poland, at a retail tax-inclusive price of £20 per ton. Stocks of this coal became exhausted in January and the principal Donegal merchants were obliged to obtain their requirements from one merchant, who had imported a small cargo of Polish coal at an increased landed cost of £22.50 per ton. This coal was retailed at a tax-inclusive price of £26 per ton, which could not be considered unreasonable, especially when account is taken of slack loss. At that time, I received complaints of a retail price of £32 per ton for coal being charged by a Donegal merchant and following investigation of the complaints it was established that the merchant concerned had been over-charging. The merchant has undertaken to refund the overcharge to the customers concerned.
Since then, there has been a further increase in the landed cost of Polish coal. On 14th February, 1974, on the advice of the National Prices Commission, I indicated that I would raise no objection to an increase in price in County Donegal to compensate merchants there for this further increase in the CIF cost. This has resulted in a revised tax-inclusive retail price of £32.83 per ton.
Because of the substantial increase in retail coal prices in recent weeks I feel there is a need for an inquiry into coal prices generally and into the different elements in the build-up of retail prices. As already announced, I have decided to establish a Prices Advisory Body to conduct a public inquiry into coal prices. I have also decided to make an order fixing the maximum retail price which may be charged for pre-packaged coal which is of special importance to the poorer section of the community.
Arising from the Minister's reply, is he aware that at present retail prices of coal in Donegal range from £32 to £40 per ton? Will the Minister state whether the Donegal merchants applied for an increase or was the figure of £32 per ton based on a directive issued by the Minister which was not in response to an application for an increase?
There are two questions there. I am asked whether I am aware that coal is being sold in Donegal at a price up to £40 per ton and certainly in excess of £32.83. I am not so aware, apart from the information the Deputy has just given the House. As the Deputy can see from the reply, we took action in regard to a particular case of over-charging and secured an agreement to refund. If people bring forward details in respect of particular merchants and particular actions I will be happy to have them investigated and to endeavour to secure redress similar to that secured in the case to which I have referred.
I was asked whether there was a general increase given or whether the increase was as a result of a specific request from the Donegal merchants. On January 16th of this year there was an application on behalf of the Donegal merchants by one merchant. The application was on behalf of all of them. I understand that the increase was in response to that.
Is the Minister satisfied that the Prices Commission were justified in granting a 50 per cent increase in the price of coal and, if so, why does he now want an inquiry into the matter?
The National Prices Commission act according to fairly well-defined guidelines. They are not totally inflexible, but they are clearly laid down. Where there is a demonstration of an increase in the price of imported material people are entitled to pass it on. It is easy for a coal merchant so to demonstrate because the increase is worldwide. It is common knowledge that there was an explosive increase in the price of Polish coal and, indeed, all coal as well as in freight rates in December and January when the energy crisis was at its sharpest.
In that sense I am satisfied that according to the information given to them the National Prices Commission acted correctly in granting the increases which they granted; but I am not entirely satisfied, and the public are not satisfied, that there was no hoarding and no profiteering in regard to coal. It is therefore desirable to have a public inquiry and have the facts brought out. If the coal merchants are being wrongly accused, let the false accusations be seen. If some of them are incorrectly accused let that be seen also and let the public draw the conclusions and take the necessary action.
(Interruptions.)
We shall have to move on. I have given almost ten minutes to this one question and there are other questions dealing with the same subject matter.
I asked a supplementary once only.
The Deputy asked a number of supplementaries.
I asked a supplementary once which happened to be two questions. Would the Minister say what is the justification for a retail price in Dublin, which is a port, of £28 or less and a retail price in Donegal where coal is also landed at a seaport of £32.83 per ton? Is there a clear justification for this large difference in price?
I do not guarantee that there is a justification. It is to find out for certain whether there is or not that we are having a public inquiry. The Deputy will be aware that some merchants have stocks at a given moment. The difficulty is that some do not. It is desirable that those with the older stocks purchased at the lower price should pass them on to the public at the lower price. If there is a difference in the quantity of stock held by different merchants at a time of rapid price increase there will be price differences at any given moment.
The Chair must ask that we deal with questions more briskly. We have given nearly a quarter of an hour to one question and there are over 400 on the Order Paper.
2.
asked the Minister for Industry and Commerce if he will state, in reference to the reason given for the recent increase in the price of Polish coal, whether he anticipates that freight charges will re-adjust downward when the present temporary abnormal demand for bulk carriers subsides to normality.
I am not in a position to forecast the future trends in freight charges. Variations in these charges will be taken into account in any consideration of coal prices.
3.
asked the Minister for Industry and Commerce if he examined the possible effects of rationalised shipping and/or combined purchasing before he sanctioned the recent increase in the price of Polish coal.
4.
asked the Minister for Industry and Commerce why the cost of Polish coal has risen so enormously.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 3 and 4 together.
The recent price increases for Polish coal to which, on the advice of the National Prices Commission, I raised no objection, were attributable to a price increase for coal already imposed by the Polish authorities and to an increase in freight rates. As the Minister for Transport and Power has overall responsibility for shipping and the supply and distribution of fuel, the question of rationalised shipping and/or combined purchasing would appear to be matters more appropriate for examination by him in the first instance. However, I understand that Irish coal importers do in fact act in co-operation in negotiating prices and supplies with the Polish authorities.
Would the Minister not agree that anything that contributes to increased pricing would be of interest to him even though it is the Minister for Transport and Power who deals with it?
Yes, the price aspect is certainly of interest to me.
5.
asked the Minister for Industry and Commerce if he is satisfied that the recent increases in the price of coal have not been levied on stocks existing at the time of sanction of the increases; and if an examination of the books of coal importers has been carried out by his Department to ensure that this has not occurred and, if not, why.
It appears from information furnished to the National Prices Commission by their consultant, who visited coal importers in Dublin, Galway and Sligo in connection with the proposals for the recent increases in prices, that these increased prices were not levied on stocks of coal imported before the increases came into effect. However, as I pointed out in reply to an earlier question, I have decided to set up a Prices Advisory Body to conduct a public inquiry into coal prices generally and I have also decided to make an order fixing the maximum retail price which may be charged for prepackaged coal.