Vol. 369 No. 3
asked the Minister for Industry and Commerce how the savings in the cost of crude oil have been passed on to the consumer; if he is satisfied that the full benefit of these savings has also been transferred to the cost of production; and if he will make a statement on the matter.
20.
asked the Minister for Industry and Commerce if he is aware of the claim made by the Consumers' Association of Ireland that an estimated £20 million has flowed out of Ireland since the abolition of the National Prices Commission because of the failure of firms, particularly oil companies, to pass on reductions to consumers; the action he intends to take as a result of this: if he will consider re-establishing the National Prices Commission; and if he will make a statement in the matter.
Limerick East): I propose to take Questions Nos. 19 and 20 together. I am aware of the claim by the Consumers' Association but am not convinced of its validity nor am I aware of the evidence on which it is based. I understand that, since the abolition of detailed price controls, the oil companies in calculating their oil prices continue to operate on the basis of a formula which was set up by the National Prices Commission.
The term cost of crude oil ex-refinery is built into the calculation of the formula to arrive at the basic product price. Any reduction in this cost is automatically included in the progressive build-up of prices. Information available to me indicates that price reductions have been effected in line with reductions in international oil prices including "spot" price levels for crude oil and that these savings have been incorporated into the cost of production and in large part into retail prices also.
I am not considering the re-establishment of the National Prices Commission but I still retain the powers vested in me under the Prices Acts and will not hesitate to avail of them if at any time this seems necessary. I also propose, within the next few weeks, to introduce a Bill which will extend the scope of other existing legislation to promote competition in the market place, thus keeping prices down and protecting consumer interests generally.
21.
asked the Minister for Industry and Commerce if he is satisfied that the major oil companies are not involved in a cartel to fix oil prices; and if he will make a statement on the matter.
Limerick East): I do not have any information available to me to suggest that the major oil companies are engaged in any such activity in relation to either petrol or motor oil prices.
Articles 12 and, 13 of the Restrictive Practices (Motor Spirit and Motor Vehicle Lubricating Oil) Order, 1981, specifically prohibit any agreements or arrangements amongst wholesalers or retailers which are designed to fix prices either at the wholesale or retail level.
The Examiner of Restrictive Practices, who is the statutory officer responsible for the enforcement of such orders, does not have any information or evidence available to him to suggest that the order is being breached by the oil companies in this respect.
