asked the Minister for Industry and Commerce if he will state the total amount in a full year of the wage increases granted since 1st June, 1952, to persons employed in (a) the milling of wheat and (b) the manufacture of bread (exclusive of any increases paid to directors and higher executives by way of increased salaries, fees or allowances).
Ceisteanna—Questions. Oral Answers. - Mill and Bakery Operatives.
As to (a) of the Deputy's question regarding the wages of flour mill workers, the position is that the Labour Court has made certain recommendations for increases but I understand that these have not yet been accepted by the trade unions concerned.
As regards (b) it is estimated that the cost in a full year of the increases granted to bakery workers following on the recommendation of the Labour Court on the 21st August, 1952, is approximately £225,000.
Could the Minister supply us with a break-down of that figure of £200,000 which he has given as representing the increase in wages to the bakery workers?
No. That is the increase in wages. It represents an increase of 10 per cent.
Has the Minister a break-down of that figure?
No.
Could he get it?
I doubt if I could.
asked the Minister for Industry and Commerce if he will state in regard to the recent Orders made by him providing for an increase in the price of bread and flour the total increase which the consuming public will have to pay in a full year in respect of (a) 2 lb. loaves of bread, (b) other loaves of bread (including fancy bread) and (c) flour.
On the basis of a fairly liberal estimate of bread consumption and on the assumption that all bread is sold at the maximum price prescribed, it is calculated that the extra amount to be paid by the public for bakers' bread as a result of the recent price increases may be about £337,500 per annum.
From the information available it is not possible to state what proportion of the increase is attributable to the types of bread referred to at (a) and (b) of the Deputy's question. As regards (c) of the question, I assume that the Deputy refers to flour used for home consumption. On the assumption that all flour is sold by retail at the maximum prices prescribed, it is estimated that the recent increase in the price of flour may cost the consuming public a sum of approximately £100,000 per annum.
Does the estimate of the increased price for the consumption of bread cover fancy bread?
It covers the batch loaf and the 1 lb. loaf, the ones affected by the recent prices.
That is not fancy. It has always been extremely difficult to calculate the quantity of fancy bread sold. This question asks the Minister the total increase in respect of 2 lb. loaves and other loaves, including fancy bread. Does the Minister's estimate include the fancy bread?
As I understand it, it is only batch bread and these loaves that are subject to price controls and on the assumption that the same number of loaves will be consumed and sold at the higher price fixed by Order, that is the effect of the increase in prices.
So if you can get an estimate in respect of fancy bread that is sold, the estimate of increased cost would, in fact, be higher?
I had better check on that. Fancy bread covers a multitude of articles and there are some types of bread which are legally described as fancy bread which are subject to price control.
Is it clear that fancy bread is not included in the estimate?
I authorised increases in prices of two types of bread—the 1 lb. loaf and the 2 lb. batch loaf. The effect of these increases in price would involve that additional payment on the public, if the same number of these loaves is consumed by the public.
As the price of flour has gone up, clearly the price of fancy bread has also gone up and clearly the public must pay more in respect of fancy bread.
Is the Deputy referring to the wholesale price of flour? If so, that would not be correct. The adjustment in the price of flour to bakers has been merely in order to get back from the bakers the difference between the extra receipts they will get from the higher price and the extra amount they will pay in wages.
That is not borne out by the figures the Minister has given. The Minister has said that the increase in wages amounts to £200,000, whereas the increase collected from the public was £330,000.
Two hundred and twenty-five thousand pounds was the increase in wages and £330,000 was the increase in the price of bread.
So there is £100,000 going into somebody's pocket?
It is going into nobody's pocket.
Who has got it?
It goes to the benefit of the subsidy. The subsidy is being adjusted to get that money.
It goes to the Treasury?
To the taxpayer's pocket.
If anyone benefits, it is the taxpayer.
In other words, it is taxed.
May I say that we did exactly the same as our predecessors did when they increased the price of bread.
Following a high standard.
A farthing is the lowest coin in circulation and therefore the lowest increase possible, but a farthing would be too much of an increase and therefore the price of flour was adjusted to bakers so that they would not benefit unduly.
This is a concealed reduction in subsidy.
It is for the benefit of the taxpayer.
And he pays for it in dearer bread.