I move:
That Dáil Éireann aware of the promises of the Government contained in pages 10 and 11 of the Fianna Fáil Manifesto relating to prices to:
(i) restructure the National Prices Commission;
(ii) discourage increased costs and prices in all areas where it has control and influence;
(iii) investigate middle men's margins;
(iv) fully disseminate, at least once a week, to radio, television and newspapers comparative prices of supermarket consumer goods;
(v) abolish the seven day rule arising out of the outer UK zone in respect of fuel price increases;
(vi) investigate why Northern Ireland prices are less—apart from tax reasons—than prices in the Republic for the identical product from the same supplier and the same factory, for example motor cars, parts, tyres, detergents, processed foods, biscuits, clothing, and
(vii) examine the accounting procedures of the ESB with a view to reducing the price of electricity—
Notes the continued failure of the Government to take decisive action in these areas after almost two years in office;
further notes the recent sharp increase in food, housing, fuel and other commodity prices sanctioned by the Government and condemns this abject failure of the Government to implement its election promises on prices.
The purpose of this motion and debate is to bring to the attention of the public that quite a number of the soft options in regard to prices and inflation, which were rather glibly handed out by this Government prior to the last election, have not in reality been achieved. I have no illusions whatsoever about the very considerable difficulty which has faced every Government of this country in their efforts to moderate, not to mention control, price increases. I am acutely aware, as is every responsible Deputy, that very often one man's wage increase can result in another man's price rise. Notwithstanding these factors, we must examine carefully the assurances given by the Fianna Fáil Party prior to the last general election that they would exert a major influence on the price situation, particularly in relation to food products. I am quite certain that the conclusion this House should come to, which undoubtedly has been reached by people outside, is that the Government have not been particularly successful in this regard.
During the election campaign Fianna Fáil canvassers went from door to door with the famous gospel—not the manifesto, which was rather large for digestion—in the form of a handbook called the "Fianna Fáil Canvasser's Guide for 1977". It is rather interesting to quote the section on prices and a couple of questions in that guide. It is stated that the following are some of the typical questions which the electorate would ask:
Isn't it just wishful thinking that Fianna Fáil can keep inflation at bay in the world situation?
No. Much of our inflation has been caused by the government's own action, i.e., a quarter of last year's price increases was directly inflicted by the Coalition in the 1976 budget and this was apart from increases in transport fares, phone charges and other increases inflicted after the budget.
Another question is as follows:
Will Fianna Fáil put VAT back on food?
No. On the contrary, Fianna Fáil is in favour of food subsidies which reduce the price of every-day foods and we pressed the Coalition to introduce them for the best part of a year before they finally did so.
So goes on the famous canvasser's guide which was trotted out on every doorstep. Inflation would, in effect, be controlled rigorously by the Fianna Fáil Party. On the assumption that we have elections about every four years, we are now half way through the term of office of Fianna Fáil and there is massive dissatisfaction with and genuine concern at consumer level about the major increases in food prices in recent months.
My colleague, Deputy Horgan, put down a question on 21 March relative to food price increases and the answer given was that between mid-May 1977 and mid-February 1979 the increase in the cost of food items in the CPI was no less than 23.3 per cent, as against an overall increase in the CPI of 15.6 per cent. I do not deny that prices increased by about 22 per cent when we were in office in the midst of a world economic recession when the price of oil was rocketing every month. Now, in a period of relative calm on the European scene in terms of inflation, Fianna Fáil can still record an increase in the food price index of no less than 23.3 per cent. As every housewife knows, between mid-May 1977 and mid-February 1979 there was a 30 per cent increase in the retail price of bread. This is quite phenomenal. In the midst of a most appalling world situation, the Coalition did not manage to increase the price of bread by 30 per cent. In the period mid-May 1977 to mid-February 1979 butter increased by no less than 29.1 per cent and the retail price of milk increased by a staggering 43.7 per cent during the period of the present Administration.
We all know that about 60 per cent of inflation is imported. There is a limit to which any Administration can control inflation but I do not recall increases of that magnitude hitting the housewife. These increased prices have caused consumer aggravation and anger against the Government.
In reply to a question I put down for today I learned that, since mid-May 1977, the average price of beef increased by 25p per lb. and the price of potatoes increased by no less than 30p per stone. Politicians take a fairly jaundiced view of the propaganda of others but any politician who believes his own propaganda is rather foolish. I remember the thousands of circulars which were distributed in Dún Laoghaire describing the Coalition Government's shopping basket and alleging horrific increases in prices, the implication being that the Fianna Fáil Party would get to grips with that problem. Notwithstanding the fact that Fianna Fáil returned to office in a period of economic and social growth after the recession in the economy, they failed to come to grips with some of the major increases in commodity prices.
One thing which affects families most is the price of foods. I learned today that, since mid-May 1977, under this Administration the price of bread went up by 7p a loaf, the price of cheese went up by 7.4p per lb., the price of sugar went up by 7½p per kilo and, as we all know, the price of butter went up by 8p a lb. Under the Coalition Government the price of potatoes went up by 37p in four years. It increased by 30p under Fianna Fáil in two years. Leaving aside the impact of the recession, the Fianna Fáil Party cannot be particularly proud of their record.
We made a genuine effort to restructure the National Prices Commission. All the paragraphs in the motion are direct quotations from the Fianna Fáil manifesto. The previous Government opened seven price line centres to receive complaints and inquiries. When we took office in 1973 there were only nine inspectors of consumer prices. When we left office there were close on 50. We made a major effort in that regard. The Minister for Industry, Commerce and Energy said that without question he would restructure the National Prices Commission. He was not very specific about it.
On 31 January 1979 Deputy Horgan asked the Minister what steps he had taken to implement his policy of restructuring the National Prices Commission. He replied:
Following my review of the structure of the National Prices Commission, I decided, with a view to enhancing its capacity to discharge its statutory functions, to appoint Mr. Patrick M. Lyons, who is a member of the Restrictive Practices Commission to act as an additional member on the prices commission.
There is the restructuring. I have a high regard for Paddy Lyons. He is an excellent member of the prices commission. Undoubtedly he was very effective on the Restrictive Practices Commission as well. It is fair to say that he is a wellknown supporter of this Administration, not necessarily an uncritical supporter but a supporter of the Fianna Fáil Party on balance. One reads his column in The Irish Press and The Sunday Press.
