asked the Minister for Industry and Commerce if he will state whether in view of the Prices Commission report of July, 1934, to the effect that the prices charged for flour in Saorstát Eireann were unreasonably high, any action has been taken to reduce the prices of flour; and, if so, if he will state the action taken, and the reductions, if any, in the price of flour that have since taken place; and whether he proposes to take further action with a view to reducing the present price of flour.
Ceisteanna—Questions. Oral Answers. - Price of Flour.
I would refer the Deputy to my replies to questions addressed to me on this subject on the 5th and 26th February last, to which I have nothing to add.
Is the Minister aware that the report in question indicated that in the opinion of the Prices Commission unreasonable profits were made by millers in respect of one quarter to the extent of £37,000, and that since that time the price of flour has gone up by 4d. a stone, according to the published statistics?
I am aware that the report set out a formula in accordance with which the commission considered that flour prices should be fixed having regard to the price of wheat and of other commodities, and charges which must be taken into account when the price of flour is being determined. The flour millers gave me an assurance, as I informed the Dáil, that the price of flour would be fixed in accordance with that formula. I asked the Prices Commission to satisfy themselves that the price of flour was, in fact, being fixed in accordance with that formula. I understand that there are some points of difference between the Prices Commission and the Flour Millers' Association as to the exact interpretation of the formula, but I have received no report as yet that the price of flour is not fixed in accordance with the Prices Commission's formula.
Do I understand that the flour situation is that in July, 1934, the Prices Commission reported that the millers in the first quarter of the year made £37,000 unreasonable additional profit, that a formula was then found, and that between November, 1934, and November, 1935, the price of flour went up by 4d. per stone, and that yet the Minister is satisfied that everything is all right?
The price of flour goes up and down from week to week. There is nothing in the formula which prevents a rise in the price of flour or a fall in the price of flour. The fact that the price of flour went up is not in itself proof that the Prices Commission's formula was not being observed by the flour millers. In fact, the price of flour has come down during the last quarter.
Is the Minister proposing to take any steps to see that in the first quarter of this year the millers will not make £37,000 unreasonable profit in the same way as they did in 1934? Does he not consider that it would be advisable for him to take some steps to do that in view of the fact that the price has been increased since that profit was made?
I am aware that in the first quarter of this year the price of flour has fallen very steadily.
How much per stone?
There has been a number of reductions in the price of flour since January. My function in regard to this matter is to see that reasonable prices are charged. On the question of what constitutes a reasonable price, I am guided by the reports and the views of the Prices Commission. They have as I have stated, been in discussion with the Flour Millers' Association as to the application of the formula, and until I have a report from them that prices in excess of those permitted by the formula are being charged, I do not feel called upon to take any action.
Is the Minister aware that the price of flour in this country is at least 10/- per sack higher than the price of exactly the same grades of flour in Great Britain—the export price, ex-mill?
I am not aware of that. I am aware that the export price of British flour is subsidised.
Is the Minister aware that there is no question of subsidy, direct or indirect, on British exported flour, but that there is a levy paid by the millers for flour sold for consumption in Great Britain? I emphasised the word "export," because I want to compare the true cost of flour at the British mill with the true cost of flour at the Irish mill. On that comparison, flour here is at least 10/- per sack more than it is in Great Britain. In some cases, 11/- and 12/- more per sack is charged in the Saorstát than in Great Britain.
I am aware that the Deputy's information is incorrect.