asked the Minister for Industry, Trade, Commerce and Tourism if he will introduce legislation to control the mark-up by the people in the machinery business on spare parts for agricultural machinery use which is between 150 and 250 per cent and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Agricultural Machinery Spare Parts.
13.
The National Prices Commission last examined the prices of agricultural machinery spare parts in 1976-77 and the results of their investigation were published in their monthly reports at that time. Since then, no complaints on prices in this area have been received in my Department, nor have the NPC expressed any concern to me in the matter.
There is, therefore, no intention, at the present time, to introduce statutory control on prices in this area.
At a recent meeting of our agricultural committee in County Meath we received a number of complaints from members that there were large scale increases in the sale and price of spare parts. Would the Minister investigate this matter because parts are expensive enough without 100 per cent or even 200 per cent being added on?
I would be happy to receive representations and pass them on to the National Prices Commission on behalf of the County Meath agricultural committee. As I have indicated, there have not been other complaints received to date on the matter. However, as the Deputy is aware, there are considerable costs involved in maintaining stocks of spare parts on a comprehensive basis, including parts which may be very slow moving and may remain in stock simply for availability for very long periods. Therefore, the margin reflects not just the cost of the parts and services but also the interest costs involved in the money tied up in maintaining stock. Furthermore, margins reflect not only the share obtained by the retailer but also that obtained by the importer on top of the basic cost price, plus transport. However, if the Deputy, the county committee or any other body wishes to make specific complaints about this, giving examples, we will be more than happy to have the matter investigated.
Would it be possible to have this area under the control of the National Prices Commission?
The price of goods and services are within the province of the commission and they are free to investigate them as and when that is necessary.
Does the Minister agree that part of the trouble is due to the inability of this country to meet the demand for machinery over the past few years, with the result that substantial stocks of machinery were dumped here which were manufactured abroad? It is very difficult to get replacement parts for this machinery.
I strongly agree that in all areas involving retailing, there are considerable advantages to the trader and user in having a local source of supply because of the speedy availability of parts and replacements. I am doing everything I can, as are the Industrial Development Authority, to encourage the development of the farm machinery industry in Ireland bearing in mind that there are considerable economies of scale in this industry and that there are only certain segments of the market in which we can become competent.