asked the Minister for Industry and Commerce what proposals, if any, there are for stabilising the cost of living with a view to ensuring that wages and incomes bear a proper relation to unavoidable outgoings.
Ceisteanna—Questions. Oral Answers. - Cost of Living Stabilisation.
97.
As I have indicated in reply to similar previous questions, I exercise price control over manufacturers and distributors in respect of a wide range of commodities which affect the cost of living. Such increases as have taken place in the prices of these commodities were necessary to compensate manufacturers for unavoidable increases in costs. Increases in labour costs attributable to wage increases during 1970 in excess of 30s a week per worker are being disallowed when assessing the amount of compensatory price increases allowable.
It is unrealistic to expect that price stability can be achieved when costs are escalating under such headings as wages and raw materials. In many cases if price increases to compensate for increased costs were not allowed the industries concerned would simply have to close down.
The Minister did not reply to the question he was asked. Obviously, the question relates to the cost of living but the Minister replied on the basis that industries cannot operate unless they get sufficient moneys to cover their outgoings. This question relates to the ordinary man in the street and what he pays in order to live. The plain meaning of the question is that wages and incomes are properly related to unavoidable outgoings in relation to the cost of living, not in relation to the cost of producing industrial goods. Perhaps the Minister does not consider that he has any responsibility for the cost of living?
You will realise, a Leas-Cheann Comhairle, that I have not been asked a question but perhaps I am expected to comment. The Deputy is entitled to his view but I do not agree with that view. It seems to me that I have answered the question to the best of my ability. Any attempt to separate the cost of living from the realities of life for industries and their workers may be theoretically sound in the Deputy's view but it bears no relation to the difficulties with which all of us—Ministers, Deputies and workers in factories—have to contend.
During last year the profits of public companies went up enormously and so did the cost of living. As far as I know, it is the business of the Minister for Industry and Commerce to control the price of industrial goods and I should like to ask the Minister if what happened in the year 1969 is not an indication of his complete failure to do this?
The answer is "no". You will have noticed, a Leas-Cheann Comhairle, that the Deputy did not refer to increases in wages but did refer to——
There were no wage round increases last year.
I do not know if the Deputy is living in the same world as I am, but to the best of my knowledge there were substantial increases in wages last year. Furthermore, it might be of interest and perhaps edification, if I were to mention that I have in front of me a letter which I received from the Irish Transport and General Workers' Union relating to difficulties in a particular firm which I do not propose to name. The letter is dated 16th February and is addressed to me. It reads as follows:
We have approximately 40 members in the employment and as the company have indicated that they will not be able to continue in business if the existing situation continues, we are to request that very favourable consideration be given to management's application in order to avoid the closure which appears inevitable unless a price increase is sanctioned. We are therefore to request that this matter have your immediate and favourable consideration.
I read this to underline the point that I was making. The union were perfectly entitled to make the request they made. It was a legitimate request, but it is not legitimate for people who may either be officials of trade unions or closely associated with them to come here and pretend or to pretend to the public in general that there is no connection between the maintenance of employment and wage increases and the cost of living.
May I put it sharply to the Minister that his exclusive concern and, indeed, his vehement and total obsession at times with the trade union involvement in rising and increasing prices and his sanctioning thereof is, to say the least of it, out of perspective and there are very many other factors involved——
Is the Deputy asking a question?
Would the Minister share the view that the rising costs of raw materials imported into the country is a major factor and that wage increases constitute something in the region of 17 per cent of the total cost of production of manufactured goods taking all sectors into account? Would the Minister not agree that his exclusive concern is a little sectarian in the economic sense?
I do not know if Deputy Desmond has a guilty conscience in this matter which prevented him from listening to what I said. In reply to the question I referred to increases in cost, whether arising out of wages or raw materials. I have repeatedly stated in this House that there are a number of factors involved. The Deputy refers to vehemence on my part. I plead guilty to this charge on previous occasions but not on the present occasion. The matters about which I have been vehement and about which I will continue to be vehement are what, in my view, amount to hypocrisy on the part of certain Deputies who suggest that there should be wage increases but that these should not have any effect on the cost of living and who try to pretend to workers that it is possible to have increases in wages that are not related to productivity, and are not related to an increase in the cost of living.
Question No. 98.
May I ask a final supplementary? Since the Minister was kind enough to refer to ITGWU, may I ask him what his answer is to the request for a £7 a week increase from the cement workers considering that Cement Limited made a gross profit of £2½ million last year and that seven pounds would amount to only 10 per cent of that gross profit for the 750 workers involved? That relates to what the Minister is talking about.
I presume that the Deputy is as well aware as I am that it is not my function, as it is not the function of the Government, to decide what action is taken by Cement Limited in regard to wage applications.
The Government——
I am calling Question No. 98.
——have kept out of it with great care.