asked the Minister for Industry and Commerce whether tea can be purchased in London in 100 lb. chests at 3/6 a lb., delivered at an Irish port, and whether on this basis reasonably good tea could be retailed in this country at 5/- a lb.
Ceisteanna—Questions. Oral Answers. - Tea Prices.
asked the Minister for Industry and Commerce whether, in view of the recent reduction in tea prices in Great Britain, there is an early prospect of a similar reduction in this country, and, if not, why not.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 17 and 18 together.
I understand that the reductions in retail prices of tea in Great Britain which were reported in the Press recently do not apply to the full range of blends on the market but relate only to a limited number of blends of medium priced tea.
Retail prices of tea in this country are governed by the prices charged by Tea Importers, Limited, for each of the various grades required for blending and the latter prices are based on the average cost of purchase to the company. Tea Importers, Limited, must buy in bulk and in advance in countries of origin. Accordingly the tea which is now in consumption and will be consumed in the coming months is tea bought last year. It is on the basis of the cost of that tea that Tea Importers' selling price is fixed and there is therefore no scope for reductions in price unless and until teas bought at a cheaper price become available to the company and are issued to the trade. In fact some quantities of the teas the company are now buying in countries of origin are being bought at prices comparable with those mentioned by the Deputy and other teas have been bought at prices lower than last year's. What the effect on the future issue price of Tea Importers, Limited, will be can be determined only when the bulk of tea required for future needs has been purchased. The position, however, will be kept under close review.