asked the Minister for Industry and Commerce if he will state why a packet of cornflakes in Dublin costs 1/10 as compared with a price of 1/4 in Belfast.
Ceisteanna—Questions. Oral Answers. - Price of Cornflakes.
asked the Minister for Industry and Commerce if he is aware of the general discontent occasioned by the fact that cornflakes of the same brand cost 6d. per packet more in Dublin than in Belfast and London; whether he has had the matter investigated; and, if so, whether he proposes to take any action.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 2 and 3 together.
I understand that a particular size of packet of corn flakes is retailed here at prices ranging from 3½d. to 5½d. over the retail prices in Belfast. Part of the difference is attributable to the higher margins taken by distributors here. So far as the manufacturers' prices are concerned an assurance has been given that these will be reviewed in the light of experience of manufacturing costs over the initial period of operations.
Might I ask the Minister if he is aware that a 12 oz. packet in Belfast costs 1/4½ and in Dublin a 12 oz. packet costs 1/10, that an 8 oz. packet in Belfast is 1/-, and a 6 oz. packet is 1/- in Dublin? Surely the Minister must admit that the extraordinary prices being charged for the flakes in Dublin and in the Republic certainly merit consideration for immediate review.
I understand that the prices vary from shop to shop here.
Is the Minister satisfied that the price charged here is justified? Would he consider the question of referring the matter to the Prices Tribunal for examination in view of the keen public interest manifested in the matter?
I have no evidence of any public interest in the matter, and it is not the type of commodity that, in my opinion, should be the subject of price regulation at all. These flakes were not on sale here before this year, and if people do not want to buy them at the prices at which they are offered then they do not have to do so.
That is a very easy way out.
Surely the Minister will agree that this is a commodity which is widely used and if there is gross profiteering, as the price shows there must be, some steps must be taken?
I do not know if the commodity is widely used. These flakes were never on sale here until this year. Whether the retailers here look for a larger margin on their sale as compared with retailers in Belfast I do not know. In my view, price control should be confined to articles which are essential or in common use.
Our freedom is expensive, then, in the Republic.
The Minister referred to retailers. He also referred to distributors. Does he mean by that retailers?
Yes. Retailers. I understand that the bulk of the difference is due to the higher margin taken on the part of retailers.