asked the Minister for Industry and Commerce if it is intended to re-establish the National Prices Commission; the other proposals, if any, he has for price control; and if he will make a statement on the matter.
114.
Ceisteanna—Questions. Oral Answers. - Price Control.
6.
asked the Minister for Industry and Commerce his policy in relation to price control.
I propose to take oral Question No. 6 and written Question No. 114 together.
I have no immediate plans for the reestablishment of the National Prices Commission or for the reintroduction of detailed price control. However, all of the ministerial powers under the Prices Acts continue in being and I can use these powers should the situation at any time warrant such action.
Is the Minister aware that in November last the Central Bank indicated that, while import prices and wholesale prices had fallen, retail prices had not followed suit? Have his Department taken any steps to monitor the relationship of retail prices to wholesale and import prices?
I am aware of press reports to that effect. The Deputy may be aware that my Department still continue to monitor prices, and any effective action needed to be taken will be taken. I am aware of such reports.
Is the Minister saying that what the Central Bank has stated is correct or incorrect? Can he indicate what procedures are available to the consumer at the moment in relation to price complaints? What section of his Department is dealing with consumer complaints?
I remind the Deputy that I was not Minister last November. If such a serious situation arose then I am amazed that no action was taken in regard to it. As the Deputy is aware, the NPC were abolished by the previous Government in January 1986 and the decision then was that detailed procedures of price control and approval of price increases would be allowed to lapse and that the general thrust of policies should move towards new measures to create greater competition throughout the economy in free market conditions. There are orders in existence requiring the display of prices for drinks in licensed premises and restaurants. Orders in relation to hairdressing and petrol have been in force from 1 March 1987. Those for food, potatoes and milk, the Deputy may or may not be aware, have been transferred to the Minister for Agriculture.
I ask the Minister again, what section of his Department is dealing with complaints from consumers in relation to price control, the display of prices or the quality of products on sale? Can he indicate whether the statement made by the Central Bank on retail prices and their relationship to wholesale prices is correct? What steps have his Department taken to monitor retail prices?
The previous Government had prepared legislation for the establishment of a new fair trade commission to replace the Restrictive Practices Commission, and enabling legislation under the Restrictive Practices (Amendment) Bill was prepared. I am re-examining this legislation and when I have considered my re-examination I will bring it to the Government for consideration. Under that new legislation, if the Government decide to proceed with it, the new fair trade commission will be strengthened and given new powers to initiate and a broader remit in relation to promotion of competition. The commission's remit to inquire into unfair trading practices will include banking, electricity and transport sectors hitherto excluded. The proposed legislation will also provide for the adoption by the Director of Consumer Affairs of the functions of the Examiner of Restrictive Practices, and the director's expanded area of responsibility will encompass a wide area of investigative and enforcement power relating to restrictive practices, consumer protection and prices.
In relation to price control, since his appointment has the Minister had an opportunity to look at the pricing arrangements of petroleum products, particularly at the pump? If he has done so, will he accept that excess profits are being made by the distribution companies?
I have sought information in regard to petroleum products because that is one area of concern in relation to seeing whether prices have come down sufficiently. That examination is being carried out. The Deputy will appreciate that my first two-and-a-half weeks in office were engaged in a budgetary discussion, but I assure the Deputy and the House that it is part of my concern and I will take any action I can when I establish what the true position is.
(Limerick East): Pursuant to the powers invested in the Minister under the Prices Act with regard to control of petroleum prices, are the powers invested in the Minister for Industry and Commerce or the Minister for Energy?
Following discussions held during the regime of the previous Government, the Department of Energy and the then Taoiseach decided in early March 1987 that price control would not be introduced on petroleum products but that the Department of Industry and Commerce would be responsible for regular monitoring of wholesale prices of such products and that the Department of Energy would supply this Department with all the necessary information required to do the task. Procedures to implement this decision have already been put in place.
(Limerick East): Who now has departmental responsibility for controlling petrol prices? Is it the Minister for Industry and Commerce or the Minister for Energy?
The Minister for Industry and Commerce.
When will the legislation which the Minister quoted be brought forward to Cabinet and ultimately to the House? When does the Minister expect to make a decision thereon? Will he agree that one of the great merits of that legislation is that for the first time it will bring the Central Bank and the banks within the ambit of fair trade legislation, which is a major step forward?
I will finish my re-examination as soon as possible and bring it to the Government.
Can he give no indication of the time?
As soon as possible.