asked the Minister for Industry and Commerce if his attention has been drawn to paragraphs 233 to 235 of the NPC Report No. 31 of July, 1974, in which reference is made to an increase in the price of bread due to the increase in the price of flour only; and if he will state whether the 9 per cent allowable as a trade discount was included in the calculations in arriving at the permitted prices.
Ceisteanna——Questions. Oral Answers. - Bread Prices.
151.
The position in regard to the September, 1974, increase in bread prices to which the Deputy refers, is that the bakers allowed the usual discount to retailers, although this discount had not been allowed for in the price increase recommended by the National Prices Commission.
It will be seen from paragraph 154 of the August-September, 1974, report of the National Prices Commission that the commission do not accept the view that price increases at the manufacturer level should invariably be followed by pro rata increases at the retail level and I am in agreement with the commission in this matter. In regard to the most recent increase in bread prices which came into effect on 2nd November, 1974, it is the commission's view, that the total proceeds of this increase should accrue to the bakers, that is the customary 9 per cent discount to retailers should not apply.
It will be further noted from the same paragraph of the commission's report that the commission have iniated a detailed investigation into margins in the retail distribution of bread and that in the light of the results of this investigation, they would hope to be in a position to judge the adequacy of the margins now allowed.