Dáil Éireann díospóireacht -
Wednesday, 13 Nov 1963

Vol. 205 No. 10

Ceisteanna — Questions. Oral Answers. - Production Costs of Irish Goods.

27.

Dr. Browne

andMr. McQuillan asked the Minister for Industry and Commerce whether his attention has been drawn to a statement in Paper No. 9 of the Economic Research Institute that, bearing in mind the possibility that retail grocery margins may be somewhere lower in Ireland than in the United Kingdom, the implication would be that the cost of production of these products in Ireland is probably substantially higher than in the United Kingdom; if he proposes to carry out an investigation on the lines of the reports of the Committee on Industrial Organisation to establish the reasons for such a position; and if he will make a statement on the matter.

28.

Dr. Browne

andMr. McQuillan asked the Minister for Industry and Commerce if his attention has been drawn to the statement in Paper No. 9 of the Economic Research Institute that, for commodities which are produced in Ireland, it appears to be true, more often than not, that the final price to the consumer is of the order of eight per cent higher than the price of the equivalent product to the British consumer; and that, if distributive margins in Ireland are in fact lower than in the United Kingdom, this would imply that producers' prices may be on average some ten per cent above the United Kingdom equivalent; and whether he proposes to institute an inquiry without delay to establish the cause of the discrepancy, and to consider suggestions for its elimination.

Mr. J. Lynch

I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 27 and 28 together.

I have seen the statements referred to in the questions. It is, of course, the case that production costs of some products are higher here than in the United Kingdom. This is due to a variety of causes including, in particular, the small scale and diversity of production of many Irish firms. As the Deputies are aware, the Committee on Industrial Organisation were established with a view to formulating the measures necessary to adapt Irish industry to conditions of more intensive competition in home and export markets. Industry is being urged to carry out the adaptation process with all possible speed.

Other practical steps taken by the Government to promote increased efficiency in Irish industry include the active encouragement and financial assistance given to the Irish National Productivity Committee and the Irish Management Institute, the generous grants available under the Technical Assistance Scheme for industry, and the special grants and loans available to assist industry to adapt itself to conditions of freer trade.

Dr. Browne

In regard to items being dealt with particularly by the grocery trade, which will be of importance to the housewife and which have particular relation to the cost-of-living index figure, does the Minister intend to hold any specific inquiry into such items?

Mr. J. Lynch

There is no question of holding an inquiry in this respect. The subject matter of the question relates to productivity and efficiency in industry. As I have said, my Department have been giving grants and other kinds of assistance to encourage industry to become more competitive and more efficient. The Committee on Industrial Organisation have suggested means whereby this can be done and my Department is taking active steps to encourage industries to implement recommendations of the Committee of Industrial Organisation.

Dr. Browne

Question No. 27 specifically mentions retail grocery margins and these are the particular items with which I am concerned. In these circumstances, would the Minister reconsider the position and initiate some sort of investigation on the lines of the CIO inquiries, which have been so valuable and informative, in order to find out what is wrong in relation to the production of these items which are of such great importance to the consumer, to housewives generally, and in the cost-of-living index figure?

Mr. J. Lynch

I have established in my Department a new branch called the Industrial Re-Organisation Branch and that Branch is very active in all matters relating to industrial production, including the matter referred to by the Deputy.

An Ceann Comhairle

Question No. 29.

Dr. Browne

Is it not a fact that the particular body to which the Minister has referred——

An Ceann Comhairle

Question No. 29.

Dr. Browne

——reaches decisions on findings established by the CIO by means of inquiries carried out at its request?

An Ceann Comhairle

I have called Question No. 29.

Mr. Cosgrave

Is it not a fact that increases ranging from five per cent to 16 per cent are the general order and that in no case can anyone discover that the tax is only 6d. in the pound? If that is so, will the Minister not take action to remedy the serious effects of the turnover tax?

Mr. Sherwin

Are the Opposition not delighted everything is going up? It gives them an advantage.

Mr. Spring

It is the Deputy's fault.

Mr. Cosgrave

Is it not a fact that this tax has released the greatest wave of Government inspired inflation that ever inundated this country?

Mr. J. Lynch

I do not accept that at all.

Mr. Norton

Did the Minister see in the papers last weekend allegations by the Tánaiste and Minister for Health that a number of people have deliberately increased the prices of certain commodities without any justification whatsoever? The Tánaiste, as is customary on occasions like that, obviously felt very indignant about what had happened. In view of this allegation by one of his colleagues, would the Minister now cause further inquiries to be made so as to follow up the allegations made by the Tánaiste, allegations which are, I think, a reflection on the Minister's Department and on his inspectorate?

Mr. J. Lynch

I am not waiting for the Tánaiste to induce any activity in my Department.

Mr. Norton

That is one up for the Minister.

Mr. J. Lynch

If Deputy Norton had been present here yesterday, he would have heard me reply to a series of questions and supplementaries on this matter. The actions that have been initiated are being pursued vigorously by the Fair Trade Commission.

Mr. Cosgrave

Will the Minister say if the Fair Trade Commission will sit in public in these matters?

Mr. J. Lynch

If and when circumstances justify, they will have a public sitting in relation to any commodity or commodities decided upon.