asked the Minister for Industry and Commerce if he will now allow price increases caused by a wage increase greater than 7 per cent, bearing in mind the general wage increase of a far greater percentage which has now become effective since his reply to a recent question.
Ceisteanna—Questions. Oral Answers. - Price Increases.
75.
As I indicated in reply to a similar question from the Deputy on 19th May, 1970, I will, in accordance with the Taoiseach's statement in this House on 17th December, 1969, disallow for price increase purposes any increases in wages during 1970 in excess of 30s or 7 per cent per worker per week. I do not propose to alter this position.
Surely the Minister and the Government must agree that there have been wage increases of the order of 25 per cent and that where industries which gave these increases are manufacturing goods that have a large labour content they may go to the wall and the people's jobs may be lost if proper price increases related to proper costs are not allowed particularly in industries with a high male labour content? Surely this is a most incorrect attitude based on a statement by the Taoiseach before the 12th round got under way?
This is still the position and I will adhere to it.
Is it the case then that the Minister and the Government are being entirely obstinate about the whole thing and are putting their heads under a cabbage leaf and refusing to see that there are goods being sold in this country in which the wage increase content is as high as 25 per cent while all they will allow is 7 per cent? Surely that means firms will go to the wall and jobs will be lost?
That has not happened.
Not yet.
The Deputy has various reasons why industries go to the wall and they are all used on appropriate occasions.
Would the Minister explain to me how a firm that is paying 25 per cent extra wages, where the wages content in the goods produced is high, can sell their goods at a price based on an increase in relation to labour content of 7 per cent? Would the Minister explain how that can physically be done?
It is difficult to explain that there is the question of streamlining the business to a far greater extent, that this is something that is to be encouraged. I have no knowledge of any number of firms that are running into very serious difficulties as suggested by the Deputy in this regard. My intention in replying was to convey that I intend to adhere to the decision as conveyed by the Taoiseach on the 17th December of last year in this regard.
In relation to the streamlining of the business yesterday by the Minister, does he suggest that some of these businesses paying 25 per cent extra now were so badly organised before the date of his statement that they can be streamlined to the extent of 18 per cent of the labour costs?
I do not intend to alter the present position in this regard.
The Minister is quite wrong.