asked the Minister for Industry, Commerce and Tourism the amount of the recent increase sanctioned by him in respect of soft drinks and if he has satisfied himself that the retail prices being charged to the public accurately reflect the cost of production plus normal margins.
Ceisteanna—Questions. Oral Answers. - Soft Drink Prices.
17.
Recently sanctioned increases were in the wholesale prices of soft drinks, and followed recommendations by the National Prices Commission. I sanctioned the increases having carefully considered the applications from the principal manufacturers, based on increased costs in respect of labour, materials and overheads.
The National Prices Commission have had the question of the margins taken on soft drinks under review in recent months and have expressed their concern at the very high margins being taken on soft drinks sold for on-premises consumption. The commission hope to be in a position to make a final recommendation to me in the matter in the very near future.
Is the Minister aware that there is a very considerable and responsible body of opinion that the margins taken by the manufacturers concerned are exceptionally and extraordinarily high? In the circumstances, the National Prices Commission should complete their review as a matter of urgency, bearing in mind the outrageously high prices charged here for soft drinks of dubious quality.
For some time the National Prices Commission have been concerned with the very high margins to which the Deputy has referred. I am also concerned about the matter. I am expecting the report in a short time and I can assure the House that I will act on it.
Is the Minister also concerned about the very high increase in the price of soft drinks imposed by the Government in the budget? It is the highest on record in any country in the world—it is a tax on children.
Are we talking about children's allowances?
The highest increase was imposed by this Government in the budget. They taxed most severely the lemonade that children drink.
It was a fourfold increase.
Is the Minister concerned about that?
Of course I am concerned about prices. Deputy Desmond asked a question about the high prices charged for soft drinks and about the profit margins. I answered the question.
Will the Minister not agree that the amount taken by his Government is far higher than any profit taken by the retailers?
No.
It is three times as much.
The Deputy is not correct. He must not be drinking soft drinks.
Does the Minister regard 70 per cent as a reasonable margin?
I have said I am concerned about the profit margin. I would like to point out to the Deputy that it differs depending on the company.
The same haul goes to the Government by way of tax.
We are not talking about tax.
The price of a pint of lemonade is dearer than the price of a pint of stout as a result of the budget increases.
Questions Nos. 18 and 19 are for written reply. I am calling Question No. 20.