asked the Minister for Industry, Trade, Commerce and Tourism if he will consider introducing price control to cover school books; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - School Books Price Control.
23.
The major firm in this sector has been subject to detailed price control for many years and the other principal publishers have been subject to monitoring from time to time by the National Prices Commission. The commission recently recommended that, in view of the changing pattern of the market, the major firm should be exempted from detailed price control for a 12 month period subject to the firm giving 21 days notice of its intention to increase prices. The commission will also continue to monitor price increases of the other major firms in the industry.
Is the Minister aware that in some cases there have been increases of 100 per cent in the cost of school books to post-primary students in particular? Does he not consider that this is an extraordinary increase? Is he satisfied that the monitoring process being used at the moment is adequate in view of the increases to which I referred?
I am sure the Deputy could produce one instance where that was the case. I want to give him the overall picture. So far as the major company are concerned, their prices in the period for 1976 to 1984 increased by 174.9 per cent, whereas the consumer price index for the same period increased by 223.1 per cent. Therefore the increase in the price of school books supplied by the largest supplier was below the consumer price index.
The figures on which I am basing my question are supplied by school teachers. They have given me a fairly detailed breakdown and I can supply the Minister with that, for his information. They clearly indicate that from 1980-81 to 1984-85 there has been a 100 per cent increase in the price of a range of books required by first year boys in post-primary education.
I should be very interested to get that information, with particular references to the books and the companies supplying them. I have indicated that the pattern, in fact, has been the prices overall over the longer period should be below the rate of inflation.
Finally, could I ask the Minister if he will ensure tighter control on the pricing of books? That is a cost which parents must meet every year, quite apart from the question of books being changed so often. There would appear to be grounds for concern at the rate of increase in price.
I do not believe in tighter control in this case. That could not only cost the taxpayers money but can lead to greater price increases than would otherwise occur. There is a damming up of price increases during a time when the company may be incurring losses and then when they come to get an increase it is huge, well above what they would otherwise have claimed because of the back-up of costs incurred in the period when the prices were kept down. Very often the maximum price set by the NPC becomes the minimum price charged in the market.
Competition in this area leads to lower prices. The Deputy was not present when we were discussing another matter, resale price maintenance, but so long as you do not have a monopolist situation, which is important, competition is the best way of keeping prices down. Up to now, this one company were subject to detailed price control because they had such a dominant position in the market. They decided for a 12 month trial period to go on a less stringent price control mechanism which I hope will lead to better competition and lower prices. I know that the Deputy and, indeed, the parents on whose behalf he is speaking will welcome that.
The remaining questions will appear on tomorrow's Order Paper.