asked the Minister for Industry and Commerce if, in view of the recent substantial increase in the price of bread, he will consider re-introducing price controls for bread; and if he will make a statement on the matter.
Written Answers. - Bread Prices.
29.
As the Deputy will be aware detailed price control procedures have been allowed to lapse since early 1986. The purpose of this was to encourage competition and to allow market forces and consumer reaction to dictate prices.
Re-establishment of the price control mechanism is something I want to avoid. It discourages competition and fuels an inflation mentality. Therefore, I do not propose to re-introduce price control in respect of bread. In any event, the retail price of bread at present is substantially lower than at this period last year. I am anxious to encourage healthy competition in this and other sectors. I would be concerned, therefore, at the emergence of any undesirable trading practices such as concerted action affecting prices. I have, accordingly, asked the Director of Consumer Affairs and Fair Trade to closely monitor developments in this area.