Vol. 372 No. 12
asked the Minister for Industry and Commerce if he will re-introduce price control in relation to certain key products and services, including petroleum products, with a view to ensuring that the benefits of lower inflation are fully passed on to consumers; and if he will make a statement on the matter.
33.
asked the Minister for Industry and Commerce if he has satisfied himself that the mark-up on the distribution of petrol is reasonable; his views on whether an inquiry into this subject would be fruitful; and if he will make a statement on the matter.
I propose to take Questions Nos. 4 and 33 together.
The Deputy will be aware that the detailed procedures of price control were allowed to lapse by the previous Government in January 1986 in favour of measures to promote greater competition and efficiency throughout the economy for the benefit of the consumer. I do not see any need for the re-introduction of such controls at present.
My Department, with the co-operation of the Department of Energy, are, however, monitoring the wholesale price levels of petroleum products at present; I am prepared to avail of the ministerial powers still available to me under the Prices Acts if that proves to be necessary to deal with any problem in this area.
Will the Minister agree that following the withdrawal of price control regulations there is ample evidence available to both his Department and the Department of Energy that the petroleum companies took excessive advantage of that situation and that on successive occasions they either retained the clear advantage or were excessively tardy in giving the reductions, as a net consequence of which the consumer lost heavily? On that basis will the Minister now consider the re-introduction of the appropriate legislation?
The Deputy was a member of the previous Government who took away the price control in this area. The evidence that is available in the Department does not seem to constitute the evidence he hinges his statements on.
The situation is monitored continuously and if such action is required that action will be taken.
I am sure the Minister will agree that the Department, having sponsored the withdrawal of the legislation, are not likely to admit readily now that they were in grievous error. I assure the Minister that I was in profound disagreement with that decision taken by the previous Government. It was a very retrograde decision. He would not have to search very far in the Department of Energy——
A question, please.
Will the Minister please contact his colleague in the Department of Energy? In the second half of 1986 there was manifest, clear evidence——
The Deputy is embarking on a statement.
——of advising the petroleum companies of the price situation and there was no clawback——
Deputy Desmond, I shall have to ask you to desist from making statements.
Will the Minister be prepared to examine the situation now and to claw back the excess profits made in recent months? They are there for the taking.
It is nice to hear the Deputy who was a member of a former Government saying in this House that there is clear evidence of total abuse in taking excess profits in the latter part of 1986 when the previous Government were there. I take the Deputy's point. I will contact my colleague in the Department of Energy and if such evidence exists he and the House can be assured that I will take every step possible to have those profits taken back. Really the Deputy is asking me to undo the damage that his own Government did in the latter part of 1986.
Is the Minister aware that the tax exclusive prices of petroleum products in Ireland are up to 37 per cent dearer than in other EC countries as quoted by EC statistics? Rather than reintroduce price control in a detailed way, will he consider a maximum prices order that would link Irish petrol prices to average prices prevailing in the EC and so prevent such a large margin of excess charge on Irish consumers?
I am having a very intense study carried out in relation to tax exclusive prices on petrol and diesel on the Irish consumer market and in general throughout the economy. I am a fair bit down the road in that regard. Without having finalised the matter, the indications are that this economy is paying over and above——
I am glad to hear that.
——what the tax exclusive prices purvey. In two countries I have analysed so far, Greece and France, there are serious questions to be answered. I am having it broken down because it must be broken down in relation to distribution, to margin and to the price itself exclusive of all taxes. The Deputy is quoting here an average price throughout the EC. I prefer to go through it country by country and look at the origin of their oil and relate it to how it went down the line. The House and the Deputy will appreciate that this exercise takes a good deal of time. There is the problem of ascertaining information that is not too readily available, that is not made available, in order to get to the real root of what the price should be on the Irish market. However, I will continue that search. I was not aware of what Deputy Desmond said in relation to 1986 because I was taking the position as I see it today and making the analysis accordingly. I will welcome all information that anybody can offer in relation to carrying out the search. The Deputy and the House can be assured that I will take whatever action is necessary to rectify the situation. But I do not think that the introduction of price control is the answer. There are different ways of dealing with it and I have power within the Department to deal with it.
