asked the Minister for Local Government if he will make a statement on the massive increases in house building costs between 1st January, 1975, and 1st March, 1977, as indicated by the house-building cost index published by his Department.
Ceisteanna—Questions. Oral Answers. - House Building Costs.
12.
I do not accept the inference that increases in house building costs have been excessive. Over the past two years the changes in the house-building cost index have been generally in line with trends in the consumer price index. It would be naïve to expect that house building costs could be isolated from the effects of increased prices in domestic and international trade. The increases in labour costs are in accord with the terms of the national pay agreements, together with the first phase of a special wage agreement for building workers as accepted by the Labour Court. Increases in the cost of materials are approved by the Minister for Industry and Commerce on the recommendation of the National Prices Commission where such approval is required.
The Government have taken account of the increases in building costs when raising the annual capital allocations for housing and the amount of loan finance available from the various lending agencies has more than kept pace with house price increases.
Would the Minister explain, in relation to this important question, if he was consulted when the National Prices Commission, and his colleague, the Minister for Industry and Commerce, approved a 25 per cent increase in the price of cement a few months ago practically on the eve of the announcement by the company of the highest increase in profits they ever had?
The National Prices Commission do not have to consult the Minister before they make a decision, as the Deputy knows. The Commission deal with experts in the various fields and their recommendation is passed on.
Would the Minister be entirely oblivious of what was about to happen in relation to an industry which is directly his concern, the construction industry, which was about to be inflicted with a 25 per cent increase in one of its indispensable products?
I do not know what the Deputy means by oblivious but I was aware that this had taken place and in view of the fact that the National Prices Commission, established by the previous Government to monitor price applications, made the recommendation I was satisfied it was necessary to grant the increase. The commission must have been satisfied. I had not the full facts; they had and they must have been satisfied that it was necessary to grant the increase. I do not know what factors persuaded them to grant that increase. When they made their recommendation I had no function in the matter.
Is the Minister denying that a member of the Government, or the Government collectively, have the right to investigate a recommendation before it is approved? Would the Minister agree that there is a precedent where the Government refused an increase recommended by the commission?
Of course, the Minister is aware that the Government have that right but when the National Prices Commission made a recommendation in this case they gave reasons why they considered it necessary. Those reasons were accepted.
The Minister knew and he approved.
It is very easy to be wise after the event.
It was not after the event on this occasion.