asked the Minister for Industry and Commerce why he sanctioned an increase of 42 per cent on the price of sugar in view of the recent large fall in the world price of sugar and the fact that increased prices for beet will not be payable until the autumn.
Ceisteanna—Questions. Oral Answers. - Sugar Price.
4.
The recent increase in the price of sugar was approved by the Government on the advice of the National Prices Commission, who outlined the reasons for their recommendation in their report for February, 1975, copies of which are available in the Library of the Oireachtas. At the time the increase was approved the world price of sugar was substantially above the Irish domestic level.
In view of the fall that has taken place in world prices, I am asking the National Prices Commission to look at the matter again.
Would the Parliamentary Secretary not ask the sugar company to look at the matter again? There has been a substantial fall, as the Parliamentary Secretary agrees, in the world price of sugar. The two reasons given by the NPC for recommending this increase, which the Government were free to accept or not as they saw fit, were that the world price of sugar was above the Irish domestic price, and that increased prices would be paid to farmers for beet this year. The farmers cannot get the increased prices until they harvest the beet in October or November and the world price has fallen substantially and in these circumstances would the Parliamentary Secretary, or the Minister, not immediately instruct the sugar company to reduce drastically the price of sugar being charged to Irish domestic consumers?
I am asking the National Prices Commission, who have all the relevant information on this matter and if they do not have it they have the means of getting it, to look fully into this matter, taking all the relevant consideration into account. When their opinion is available we will then be in a position to have discussions with the sugar company, should these be necessary.
Is the Parliamentary Secretary aware that neither the sugar company nor anybody else has to get permission to reduce the price of sugar? The Minister should now communicate with the sugar company and instruct them to reduce their prices substantially at once.
I have told the Deputy what I intend doing.
Does the Parliamentary Secretary realise that if he is now proposing to ask the National Prices Commission to do this, by the time they consider the matter several months will have elapsed? It is possible that the justification which exists at present for a substantial decrease in the price of sugar might have passed by that time. Will the Parliamentary Secretary not take an interest in the effect this is having on consumers.
The Deputy should be aware that the world price is not the only consideration which determines the price which must be paid to the sugar company. There are considerations such as the maintenance of employment and of the payment of a reasonable price to producers by the company to be taken into account. These factors will not move, necessarily, in the same way as world prices.
Does the Parliamentary Secretary agree that the increased price to producers is in respect of this year's crop which cannot be harvested before October or November and which does not go into the sugar factories until December? As this and the world price are the factors that were taken into account by the NPC, will the Parliamentary Secretary, since neither of them are operative at present, take immediate steps in aid of sorely pressed housewives to reduce considerably the price of sugar?
I have indicated what I am prepared to do and the National Prices Commission will be in a position to give me objective advice as to the steps which could appropriately be taken.
In two or three months' time?