asked the Minister for Industry and Commerce if he is aware that the increase in the price of bread is causing serious hardship, particularly to the poor; and what steps he proposes to take to relieve this hardship.
Ceisteanna—Questions. Oral Answers. - Price of Bread.
50.
Following detailed examination of the bakers' claim for an increase in the price of bread to compensate for increases in wages and other costs and for the additional turnover tax, I raised no objection to a compensatory increase of 2d in the retail price of the 21b loaf, with pro rata increases for other bread units, from 1st May, 1970.
The Deputy will appreciate that, while an increase in the price of bread is regrettable, the extra costs which led to it are outside the bakers' control.
Would the Minister not agree that the most recent increase —and another one which, I am told, is to come later—is directly attributable to the turnover tax?
No.
To what is it attributable, so?
Increased wages and costs.
But would the turnover tax not——
I agree. The Deputy asked if it was not mainly due.
What percentage of it is attributable to the turnover tax?
Point seven of one penny.
Would that be a penny or a half-penny?
Even though the Minister says the increased price of bread contains an element for turnover tax, has the Minister received any complaints that the shopkeepers are charging turnover tax on the actual price of the loaf, in addition?
The price has gone up by 2d per 2-lb loaf. That includes turnover tax.
On top of that 2d, is the Minister aware that most people selling bread are in fact charging turnover tax on the new price of the bread?
I am not so aware.
Would the Minister have the matter investigated? He will find it very easy to get evidence.
It should be.
I get the impression that .7 of 1d is humorous to the Minister. In other words, 50 per cent of the increase is attributable to the turnover tax. It is a major contribution.
The other part of the increase, attributable to labour and other costs, is 1.3d. On the Deputy's reckoning, that is 1d.
Yes, and the increase is a Fianna Fáil levy.
Would the Minister not agree that this very substantial increase, together with the increase which I understand is around the corner, will hit the poorer sections of the community?
I am conscious of that. That is why the Minister for Finance made such generous provision for that particular section of the community in the preparation of his Budget.
Would the Minister agree that the poorer sections of our community got at least 10s by way of increase? Therefore, they would need to eat 60 loaves per week to do away with that.
That is a fact. It would be no harm if the Members of the Opposition listened to what Deputy Power is saying.
Is the Minister aware that not alone is 2½ per cent turnover tax being imposed on the increased price of bread but in many cases five per cent and six per cent is being charged on the grounds that the shopkeepers, in the first instance, absorb the first increase of 2½ per cent turnover tax themselves? Now they are imposing at least six per cent on top of the actual price.
The Opposition cry out, on occasion, for the small shopkeepers; I cannot understand why the Opposition are now so anxious to nail the small shopkeepers here and to make false allegations against them.
Answer the Deputy's question.
I do not agree.
Would the Minister's attitude be to let them eat cake?
No.
If I supply information to the Minister, will he take action on it?
Certainly, if I get certified information.
Has the Minister enough inspectors?
The Minister should walk around the shops.
I do.