Vol. 294 No. 1
asked the Minister for Industry and Commerce if he will disallow the proposed price increases in petrol and oil products which have been applied for recently, in view of the fact that these applications are based on the results of the Irish subsidiaries of the oil companies concerned rather than on the profits being made from sales on the Irish market by the parent companies.
25.
asked the Minister for Industry and Commerce if he will make a statement on reports that the price of petrol will shortly exceed £1 per gallon in this country; and the steps he is taking to prevent this.
I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 24 and 25 together.
Proposals from the oil companies for price increases for petroleum products have been received recently in my Department and are being considered in consultation with the National Prices Commission. Until this consideration has been completed, it would be inappropriate for me to make any statement on the matter.
I may add that none of the price proposals under consideration would result in an increase in the retail price of petrol to £1 per gallon.
Did the Parliamentary Secretary see reports in yesterday's newspapers to the effect that it appeared an increase had been allowed in the region of 4p per gallon and that it was being deferred until after today so that it would not show up in the quarterly CPI?
I have had my attention drawn to the reports referred to. They are not true.
No decision has been made?
That is so, and the effect on the CPI in a particular period is not a factor in the taking of a decision.
When does the Parliamentary Secretary anticipate a decision on this application?
I cannot anticipate at this stage but it is obvious the decision will have to be taken pretty quickly.
Would the Parliamentary Secretary deal with the point in Question No. 24, that these applications are based on the results of the Irish subsidiaries of the oil companies concerned—on their alleged non-profits —rather than on the profits being made from sales on the Irish market of foreign-based parent companies, which are substantial?
The latter part of the Deputy's supplementary is not contained in the original question. The question as to whether those factors apply will be a matter to be considered in making the decision on the application.
Can the Parliamentary Secretary assure me and the House that these factors will be taken into account—the non-profitability of the Irish subsidiaries and the fact that their foreign based parent companies are making very substantial profits?
In making a decision of this character all relevant factors, including unfair competition as between one market and another, will be taken into account.
Is the Parliamentary Secretary aware of the very serious effects the present high price of fuel oils are having on the economy in general and on the lives of people who use cars, and will he give us any hope that these increases, which occur practically on a monthly basis, will be stopped and that if companies consider it necessary to increase prices further he will consult with his colleague who is responsible for taxation so that the price of fuel oils will be kept at a level which the economy and the people can bear?
The level of taxation on any particular product is a matter for consideration, in the context of the general economic strategy, by the Government as a whole, and I have no particular control.
Will the Parliamentary Secretary say whether the NPC have yet to make a recommendation in regard to the proposed price increase referred to in the question, and if so when?
The NPC have made a recommendation on this matter. I understand it was made in the last week.
Did the Parliamentary Secretary not say in an earlier reply today that this matter was being considered by the NPC and the Minister?
What I said in the original reply is that proposals from the oil companies for increases for petroleum products had been received recently and are being considered in consultation with the NPC. The NPC have made a recommendation in this matter, but if further consultations are necessary with the commission they can take place. I am not saying it will be necessary.
And the quarterly CPI will not have any part in the Minister's consideration?
I have already said that is not a factor.
What is the recommendation of the NPC?
I do not intend to divulge it at this stage. However, when a decision is announced it can be divulged.
Of course, it can.
Will the Parliamentary Secretary agree that any new increases should be absorbed by the 15p per gallon imposed by the Minister for Finance two years ago?
That is a matter of general fiscal policy.
