asked the Minister for Industry, Trade, Commerce and Tourism the number of companies and organisations that the National Prices Commission have recommended to him since January 1983 as being no longer subject to his approval for price increases; the name of each company; the reasons for this recommendation; the number of increases allowed, granted, approved or imposed by these companies since January 1983; the reasons for this; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - National Prices Commission.
9.
Since January 1983 the National Prices Commission have recommended that 19 firms or organisations should be exempted or partially exempted from detailed price control and that in the case of 26 firms or organisations exemptions already given should be renewed.
Details of the main recommendations of the National Prices Commission in this regard are published in the commission's monthly reports. The reasons for the recommendations vary but are generally due to the following factors: strong competition in a particular market, poor financial position of the relevant firm or export exemption. The majority of exemptions are reviewed annually by the commission.
The monthly reports also give details of price increases notified by firms which have been granted exemption but are still required to give 21 days notice of proposed price increases. Copies of the commission's reports are circulated to Deputies and are available in the Dáil Library.
It appears that since January 1983 45 companies have been exempted, or partially exempted, from jurisdiction under the National Prices Commission. Will the Minister not agree this is an unhealthy situation, that companies are now free to bring in increases as they see fit at any time without referring to any organisation? This is detrimental to the consumers and to the economy generally in view of the fact that we have considerable competition from imported products.
The Deputy is not correct. What has happened is that they have been relieved of the obligation of detailed price control whereby they have to submit every application two months in advance and have it approved by the commission after detailed study. In most cases there is now a system whereby they give 21 days advance notice before implementing the price increase. If the Minister or the National Prices Commission want to stop them from doing that they have 21 days in which to do it. It is considered to be more efficient but they are still subject to price control in general.
10.
asked the Minister for Industry, Trade, Commerce and Tourism if he is satisfied with the workings and recommendations of the National Prices Commission; and if he will make a statement on the matter.
The National Prices Commission was established in October 1971. Its function is to keep under review the prices of commodities and the charges for rendering services and for carrying out work or processes and to advise me in relation to such prices and charges.
The commission has published reports on its activities on a monthly basis since its establishment. Since October 1971 the commission has considered over 6,000 price increase applications. Most of the commission's recommendations have been accepted.
I am satisfied with the manner in which the NPC has performed its functions over the years.
It is often said by consumers that companies put in larger claims than are warranted. Quite a number of the 6,000 applications were granted in full — obviously the Minister has not got that kind of breakdown before him. It is being said that the National Prices Commission are in need of radical review. I know the Minister does not like the word "review" but there is an impression abroad that applications for increases are being made that are greater than the market needs. Will he consider looking at the whole matter of the National Prices Commission?
The commission have at their disposal a consultancy unit composed of highly qualified people. In addition, the commission meet once a week. They can go through all the applications and if they consider there is any padding in the applications they can eliminate it in their recommendations to me. Since 1979 the main thrust has been concentrated on those firms that are in what is called a dominant position in the market. They do not spread their investigations over all firms but concentrate on firms where there is a possibility of overcharging and that combination of concentration and resources should mean that excessive applications should not be sanctioned.
Is the Minister satisfied that whatever increases are allowed subsequent to the investigation of the NPC are monitored? Are the commission aware of what happens subsequent to their recommendations being accepted?
That seems to be a separate question.
It is vital with regard to the whole operation of the NPC.
It may be, but it is a question of the administration of price control and not the fixing of prices.
It is a reasonable question.
It might be a reasonable question if it were asked at a reasonable time.
I am asking the Minister how the whole matter is monitored subsequent to an application being granted.
I have indicated in respect of those exempted that they are reviewed annually. In the case of those subject to detailed price control, the next time they come looking for a price increase everything that has happened since the former increase was sanctioned is considered by the commission.
11.
asked the Minister for Industry, Trade, Commerce and Tourism if he has noted the contents of a recent report by the National Prices Commission which indicates that the price of ham bears no relation to its meat content; and, if so, the action he proposes to take.
I have noted the report by the National Prices Commission and their recommendation that consideration be given to imposing mandatory labelling of cooked cured meat products to give an indication of meat content levels and the amount of curing ingredients incorporated in the products. The recommendation is being examined by my Department in consultation with the Department of Agriculture, who have a general responsibility for the meat processing industry.