asked the Minister for Industry and Commerce if he is aware that huge increases are about to take place in the price of animal foodstuffs; and if he has any machinery at his disposal to ensure that such increases are justified.
Ceisteanna—Questions. Oral Answers. - Animal Foodstuffs.
17.
Average world prices for the main ingredients in animal feeding stuffs have increased in recent months, and these increases will presumably be reflected in feedstuff prices early next year.
Under present arrangements changes in prices of animal feedstuffs are monitored regularly by my Department, as are price changes of the main ingredients. This arrangement should ensure that unjustified increases in feedstuff prices do not occur.
In addition, the examiner of restrictive practices is, at my request, keeping the industry under review to ensure that practices restraining competition do not develop.
Does the Minister intend to reintroduce price control on animal feedstuffs, remembering the way in which prices spiralled last year when he withdrew the controls?
I do not accept the latter part of the Deputy's supplementary question. There are, I think, two contrary arguments here: if one fixes a maximum price, that becomes the price and one eliminates the benefits of competition. In a time of explosive price rises control is the correct thing to do. On the other hand, when raw material prices are either rising slowly or are stable then, in the circumstances of animal feedstuffs, an industry in which there are many participants, I believe it is appropriate to let competition ensure that the farmers get the best possible price. Experience of decontrol would lead one to accept that. There was also the very admirable response on the part of some suppliers who quoted really competitive prices and forced others down, again indicating that decontrol was the correct procedure. I am, of course, keeping the matter under review, but I am not satisfied that control is the correct approach at the moment.
Is the Minister telling the House that decontrol creates competition and causes a reduction in prices? Is he telling the House that?
Yes, he is. There is ample statistical evidence to indicate that that was the position.
Has monitoring, which has been mentioned by the Minister, created any serious situation, arising not from imports of some raw materials but in relation to home produced materials, calling for necessary action by his Department?
Up to the present, no. I am satisfied that competition is operating and that price rises, where they occur, are the inevitable sequel to rises in the prices of raw materials.
Surely the Minister is aware that there may be a scarcity of feedstuffs and surely he is also aware that everybody who is interested, if there is a subsidy, will be immediately in the market trying to buy feedstuffs? Is he not also aware that there is a danger that this subsidy will be completely eroded by an immediate rise in price? Is he not aware that last year corn sold at £45 a ton was bought back at £90 a ton——
The Deputy is embarking on an omnibus question.
I am asking supplementary questions which are vitally important. I am talking about homegrown stuff. I am not talking about what is brought in at all. I have said what happened last year and it may well happen again this year.
The Deputy is right; it did happen last year to some extent.
It did happen and the producers did not get any benefit.
We are monitoring it and, if there is evidence of a lack of competition or certain monopoly practices develop, we will use all the powers we have to meet that situation. It is possible that a situation could arise and, if that situation does arise, through my Department and through the powers we have in regard to restrictive practices, we will reimpose control.
May I ask the Minister——
Question No. 18.
This is a very important matter.
I have given the Deputy and his colleagues a great deal of latitude. Question No. 18.