asked the Minister for Industry and Commerce if he is satisfied that the recent ten per cent reduction of tariffs on imported goods has resulted in a reduction of the prices of such commodities; and, if so, if he will give particulars of such known reductions.
Ceisteanna—Questions. Oral Answers. - Reduction of Import Tariffs.
46.
I have no information available as to whether reductions in prices have resulted from the reduction of 10 per cent in the tariffs on certain commodities.
Is it not assumed that the underlying idea of reducing tariffs is to make the import price lower than it was under a higher scale of tariffs? Surely some record is kept in the Minister's Department of what the effect is of reducing tariffs on imports. It ought to mean a reduction in prices. Surely it is a matter of concern to the Department to see if in fact a reduction is taking place or if in fact the benefit of the reduced tariff is going into the pockets of people for whom it was never intended.
There was another purpose in the reduction in tariffs, that was, to encourage our own manufacturers to become more competitive. As far as answering the specific questions is concerned, it would be necessary in respect of different products affected by a tariff reduction to compare prices as on dates before and after 1st January, 1963, and further to segregate elements of price changes arising for reasons other than tariff reduction, for example, variations in prices charged by the foreign manufacturer concerned. As well as that, the Central Statistics Office are not equipped to undertake the task suggested by the Deputy in the ordinary course of work. It would require special and precise study which in any event would not be complete or conclusive.
I take it, if present policy persists, we will reduce tariffs by ten per cent in instalments until there are no tariffs left. Is it intended to study what the effects of these reductions are on the home price and who is getting the benefit of them or is it intended to take no interest at all and to let anybody get what he can?
The Deputy may be sure that the intention is that the effect of tariff reduction will be enjoyed in so far as possible by the consumers.
Is anybody going to make sure that it is the inoffensive, simple consumer, who has no power and no wealth, who will get the benefit of these reductions or is it some strong highly-capitalised institution that will collar all the benefit?
The Deputy is too quick off the mark with these questions. It will take some time before the effects of the reductions will be apparent.
I am awfully sorry to have startled the Minister. Please continue the somnambulance.