asked the Minister for Industry and Commerce if he is aware that his action in removing control on the price of milk has resulted in an increase of 2d. per quart in Wexford town and, further, if, in view of the fact that this represents an increase of 22 per cent., he will take steps to see that milk is available in Wexford at a more reasonable price.
Ceisteanna—Questions. Oral Answers. - Removal of Control on Price of Milk.
I am not aware that the price of milk in Wexford town has been increased by 2d. per quart since milk price were decontrolled in that area. I understand, however, that milk vendors there recently decided to increase their prices for milk by 1d. per quart with effect as from Monday, the 11th February, 1952.
Did the Minister contemplate, when he removed the control on milk, that these increases in milk prices would take place and will he say if that action was taken for the purpose of facilitating the increase in milk prices?
The next question refers to that matter.
asked the Minister for Industry and Commerce if he will state on what grounds he removed the controlled prices on milk for rural and urban areas in the Republic of Ireland.
I removed control over the price of milk in the areas outside the Dublin and Cork sale districts on the recommendations of the Prices Advisory Body. In taking this action I had in mind numerous representations which I had received concerning serious local shortages of milk in various parts of the country due to the belief amongst producers that the price fixed during winter months was uneconomic. This course was also recommended to me by the Minister for Agriculture.
The Minister realises now that the effect of the decontrol has been to increase the price of milk. Large numbers of people cannot now buy as much milk as they were able to buy formerly and that will affect the poorer sections of the community, who are worse off than anybody else.
That is not quite correct. The matter came up for consideration (1) following representations from the public in respect of their inability to get supplies of milk because of the withdrawal of people from the business, and (2) following an application from the organisation of milk producers for an increased price. The matter was referred to the Prices Advisory Body who, having considered the application, recommended decontrol. It was contemplated that decontrol would be followed by an increase in price, generally, but it was thought that decontrol would mean that prices would be adjusted more accurately to local conditions in that way than by making a general Order for the whole country. While the position in one or two districts is being investigated, I think I should say that the increase which has taken place is not less than what the Prices Advisory Body would have recommended if the decision had been to maintain control.
There is now no ceiling whatever. It is just left to the rapacity of the local producer to get what he can from those who must buy milk. In this country, which does not consume as much milk as should be consumed, compared with other countries in Europe, large sections of our people will now be deprived of even the small quantity which they used to consume up to now. The effect of this Order is that the people who need milk most will get less. Is that desirable?
I do not agree with what the Deputy says. It is recognised that any increase in price must have an adverse reaction on consumers. The position is that large supplies of liquid milk were not available at all in parts of the country. I think that that situation would have extended if no action had been taken in the matter.