asked the Minister for Industry, Trade, Commerce and Tourism if he is aware that the price of coal and slack has increased by £16.50 since mid-January 1984, that is from £53.50 to £70 in 11 months; the increases his Department approved during this period; what the current price should be according to his Department; if he is satisfied that the regulations have not been broken; the action he intends to take; and if he will make a statement on the matter.
632.
asked the Minister for Industry, Trade, Commerce and Tourism if (a) his Department is aware that the price of coal in the Drogheda area, County Louth, has increased by £21.12 per ton plus £1.06 VAT, a total of £22.18 per ton which is an increase of 26.47 per cent from mid-January 1984; (b) if the National Prices Commission has recommended a total of £22.18 per ton since mid-January 1984; (c) if he gave sanction to the merchants in the Drogheda area to apply this total increase since mid-January 1984; (d) the amount and dates of increases granted; (e) if his Department is aware that a further increase was notified to the Drogheda Bellmen's Association of £3.08 per tonne plus VAT from 3 December 1984; (f) if an application to the National Prices Commission was made regarding this further increase; (g) if he is aware that this would mean that the price of coal will now cost £109.20 per ton including VAT; that this is a total increase of £24.20 per ton or 30.33 per cent since mid-January 1984; (h) if he agrees that these increases should not have been applied without his consent; (i) if he will make an order fixing the maximum price of coal in the Drogheda area and removing any increase effected without his consent; (j) the action if any he can take against any merchant or supplier who has been in breach of any regulation or order made by him; (k) if he is aware that this matter has been reported to the National Prices Commission on a number of occasions and that no positive action was taken against the traders concerned; (l) if he is aware of the hardship this has created in the Drogheda area and in Counties Louth and Meath; (m) what the price of coal per ton and per eight st. bag should now be in the Drogheda area as per his Department regulations; and (n) if he will now make a statement on the matter.
I propose to take Questions Nos. 631 and 632 together.
The wholesale coal prices of the main coal importer in the Drogheda area are subject to price control. Control on coal prices at retail level by way of maximum prices order is applied only to coal sold in sealed bags. The current wholesale price approved for the Drogheda area is £111.38 per tonne inclusive of VAT. This is based on the most recent recommendation of the National Prices Commission. Increases recommended by the National Prices Commission and approved since January 1984 have been as follows:
|
Price Increase per tonne |
Date of approval |
|
(VAT inclusive) |
|
|
£4.73 |
25 July 1984 |
|
£10.94 |
23 October 1984 |
|
£5.42 |
4 December 1984 |
The approved price per tonne prior to July 1984 was £106.79 including VAT. Approval for this level was granted in November 1982. This price included a margin for retail selling costs which no longer applies to the main importer who I understand is no longer engaged in retail sales.
The major factor which has influenced coal price movements in Ireland over the past few years has been the fluctuating cost of purchasing coal abroad and this has, of course, been influenced by movements in the value of the Irish pound relative to both the US dollar and £ sterling, the currencies in which most coal is traded. An additional factor during the past months has been the UK miners' strike as a result of which distributors who might normally be selling English coal may have had at times to change to higher priced supplies. Of the total increases approved some 93 per cent is attributable to increases in import costs.
I am satisfied that the prices recommended by the National Prices Commission were fully supported by documentary evidence of increases in costs and that a current wholesale price of £111.38 per tonne can be justified. As this is a wholesale price an additional margin would be warranted, to cover delivery costs etc., in arriving at the retail price. I have no evidence that retail prices charged in the Drogheda area are excessive and in fact current prices compare well with prices in other areas of the country. In view of this, I see no need at present to make changes in the current arrangements for price control on coal in the Drogheda area. As indicated above prepackaged coal sold in sealed bags is subject to control at retail level by way of maximum prices order. The current VAT inclusive maximum price for a 50 kg sealed bag is £7.05 which is the equivalent of £141 per tonne.
In reply to the Deputy's first question I would point out that the price of slack in the Drogheda area has not been subject to detailed price control for some years. I understand from the main importer that the wholesale VAT exclusive price of slack increased from £53.50 to £70 per tonne during 1984. However, as this increase was broadly in line with movements in the price of coal during the same period and since the current wholesale price is comparable with slack prices applying elsewhere in the country, I see no need to impose controls on the price of this commodity in the Drogheda area.
