andMr. Bruton asked the Minister for Industry, Commerce and Energy the percentage increase represented by the increase of £8 for the first hour on the service charge for a firm (details supplied); how this increase was justified in conjunction with the introduction of a mileage charge of 12p per mile over 15 miles; and if he is satisfied that purchasers of the products in question would reasonably have anticipated such an increase in service charges at the time of purchase.
Ceisteanna—Questions. Oral Answers. - Increased Service Charge.
19.
£8 is the service charge made by the company referred to for the first half-hour of service; together with charges for each additional quarter hour it represents a percentage increase of 37½ per cent for the first hour over the charges previously in operation. The application from the firm was considered in detail by the National Prices Commission who considered that the increase sought was justified under normal price control criteria. The products in question could obviously have been purchased by different customers at various times and it would serve no useful purpose to indulge in conjecture about what increase in service charges it might have been reasonable for such customers to anticipate at the time of purchase.
Would the Minister consider it desirable in cases of purchases of goods of this sort where such increases are liable to occur that that possibility should be specifically drawn to the attention of purchasers at the time, and would he consider using his powers under the Consumer Information Act to achieve this?
I will have the Deputy's suggestion examined.
Is the Minister aware that in the current issue of the NPC Report attention has been drawn to the exorbitant increase in service charges above and beyond the rate of inflation which is outlined in the CPI? What steps does he intend to take to control the rate of inflation in these prices?
As I informed the Deputy, this charge or alteration which he has referred to in the question was approved by the NPC.
In line with the information in the Minister's answer, in which I understand he said there was an increase of 37 per cent on one charge, and in line also with the increase in CIE fares today of 20 per cent, may we now expect that Government policy will be to allow increases of anything up to and including 37 per cent to 40 per cent or more?
One cannot say.