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Dáil Éireann debate -
Tuesday, 25 Oct 1977

Vol. 300 No. 8

Ceisteanna—Questions. Oral Answers. - Price Control.

18.

asked the Minister for Industry, Commerce and Energy what action he proposes to take arising from the NPC opinion of June, 1977, that the arrangement for price control of petrol and petroleum products within the outer UK zone pricing structure is at present more beneficial to Ireland.

19.

asked the Minister for Industry, Commerce and Energy when the Government intend to abolish the seven-day rule arising out of the outer UK zone in respect of fuel price increases.

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 18 and 19 together. The present price control arrangement for petroleum products is suited to this country in the short term because we benefit from the results of competition between oil companies in Britain. It will be recalled that in July last as a result of developments in Britain petroleum prices here were reduced. For the time being, I do not propose, therefore, to change the arrangement but I am continuing to keep it under review.

Does the Parliamentary Secretary appreciate that her reply is totally at variance with the statement made by Deputy O'Malley prior to the election, namely, that he proposed to terminate the arrangement and that termination would result in a substantial reduction in the price of petroleum products? Is there any indication now that he is going to terminate this arrangement?

There is no indication the arrangement is going to be terminated. As the Deputy realises, there is some information available to the Minister now which was not available to him before he became Minister.

Did I understand the Parliamentary Secretary to say that the reduction in July was the result of competition between companies in Britain?

The price came down in Britain because of competition.

And that is why it came down here also?

As the Deputy knows, we abide by the seven-day rule.

It was because of competition in England the price came down here?

I am glad the Parliamentary Secretary has learned that because I distinctly remember her saying on Radio Éireann one night that she had brought down the price of petrol.

The Deputy is mistaken. He perhaps read it in an interview in The Irish Times in which I jokingly referred to the fact.

20.

asked the Minister for Industry, Commerce and Energy the detailed proposals which were put by him to the National Prices Commission according to an official statement of 29th July 1977; and the revised guidelines, if any, now in operation by the NPC for the purpose of price control.

The proposals which I put to the National Prices Commission at a meeting on 27th July, 1977, as the official statement referred to by the Deputy made clear related to more vigorous examination of applications for price increases. I am at present awaiting the response of the commission to my proposals. Until this is received and considered by me in consultation with my colleagues in the Government, it would be inappropriate to give details of my proposals, or to introduce revised guidelines.

Why the great secrecy relating to the guidelines in view of the very evasive nature of the various statements made by the Minister prior to the election about what he was going to do in regard to the Prices Commission? Now, apparently, the information cannot be disclosed.

As the review of price control procedures suggested by the Minister is still under consideration no details can be disclosed. It is impossible at present to anticipate decisions by the Government or the Minister on revised price control procedures. In the circumstances it is recommended that the details should remain confidential.

Can the Parliamentary Secretary say if the National Prices Commission have given any indication as to when their views will be forthcoming and, if so, if the National Prices Commission's views will be published in one of their monthly reports?

As the Deputy may be aware, the commission intended to report to the Minister on their proposals during September. However, due to circumstances outside the commission's control, the meeting of the commission did not take place until 6th October and the commission are now finalising this document and they hope their report will be communicated to the Minister at the earliest possible date.

That is the report for which month?

August-September.

Somewhat out of date.

I understand the normal date for the publication of these reports is about the beginning of the second month. That would be the beginning of November.

What is the purpose of the survey?

As the Deputy is aware, there was considerable concern among people in the Republic regarding the anomalies which existed between the prices of cars and various other items here and in Northern Ireland. This survey was commissioned by the Minister to see what are the reasons for the anomaly, and if they can be righted within the Republic, he will do so.

Is the Parliamentary Secretary aware of the very specific assurance given by the Minister that he would fix the prices of the particular products I have mentioned in the question at their Northern Ireland levels? He has since become Minister. He gave these very specific and very definite assurances prior to the election and apparently nothing has happened.

The Minister had a meeting with the National Prices Commission. He put to them his detailed proposals, which he had put to the electorate before the election, and asked them to report back. When they report, I can assure the Deputy that action will be taken.

In connection with motor car parts, is the Parliamentary Secretary aware that from 1st January, 1978, following an EEC directive, duties on spare parts will be abolished? Will the Parliamentary Secretary make a refund to the motor trade when they have stocks on hand?

That is a separate question.

It arises out of Question No. 21. Can I get an assurance from the Parliamentary Secretary?

21.

asked the Minister for Industry, Commerce and Energy if he has yet received the reports of the National Prices Commission in relation to the prices of cars, motor car parts, tyres, detergents, processed foods, biscuits and clothing, and so on, in the Republic and Northern Ireland; where comparative reports for such products are not available if he has requested such investigations; and if he will list the products where he has to date fixed their prices at the Northern Ireland level.

As I indicated in reply to Question No. 20 I am at present awaiting the response of the National Prices Commission to the detailed proposals which I put to them on 27th July, 1977, regarding the examination of price increase applications. However, certain arrangements are already in hands with regard to comparisons with Northern Ireland prices. A detailed study of the motor industry is being carried out at present. As part of the terms of reference the consultants engaged in the study have been requested to examine the prices of a representative sample of motor vehicle models in the Republic and Northern Ireland and to identify and report on the reasons for differences in price levels where these are found to exist. Arrangements are also being made for a study of comparative prices of a wide range of grocery products in Dublin, Belfast and Liverpool. The items to be covered in the survey will include a range of detergents, processed foods and biscuits. Other initiatives will be considered following further consultation with the National Prices Commission.

22.

asked the Minister for Industry, Commerce and Energy if he has requested the National Prices Commission to investigate the middle-men's margins in relation to the price of fish.

I have asked the National Prices Commission to carry out a study of middle-men's margins in relation to fish. The commission are at present making arrangements for the study.

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