Petrol price decontrol review
The Minister said he was not considering decontrol but would review the Prices Commission’s forthcoming recommendations, with consumer interests—particularly rural consumers—considered. Deputies questioned whether decontrol could lower prices, challenged the Commission’s performance and sought information on its review and Irish–UK price differences; the Minister said the report was expected soon and he would consider a price reduction when a recommendation justified it.
asked the Minister for Trade, Commerce and Tourism if he is considering decontrolling the price of petrol and oil; if so, when; and if he will ensure that consumers in rural areas will not be adversely affected by such a decision.
Comment on this
I am not considering any proposal for the decontrol of petroleum product prices at present. The Deputy may, however, have in mind, my announcement last week that the National Prices Commission are reviewing price control arrangements for these products, to ensure that they continue to serve our current needs adequately. The commission have carried out such reviews in the past and I will, of course, give full consideration to any recommendation they may make to me. The Deputy may be assured that the consumers interest will be uppermost in my mind in any consideration of this matter.
Comment on this
It is appreciated that the consumer would have the Minister's interest. It is not clear, however, whether it is the intention to allow a two tier price system in this country and that is the kernel of the question.
Comment on this
No. I do not want to mislead the Deputy. I have no intention of doing it now; I am not contemplating doing it now but any recommendation that may come in the future — and I am not anticipating any but I do not want to mislead the House even inadvertently — from the National Prices Commission will be given serious consideration by me.
Comment on this
In view of the serious concern of both consumers and traders in my area I would ask the Minister if he proposes to issue a substantial statement on all of this subject clearly setting out, for the benefit of everybody concerned, what the tax element is and what the other elements are so that he himself and the Minister for Finance will not be getting the blame for what I believe is the failure of the National Prices Commission, and will the Minister agree with me that it is particularly galling for people in Border areas——
Comment on this
The Deputy may not engage in argument. It may be a good argument but it is nevertheless an argument.
Comment on this
I want to ask the Minister to comment on the fact that people are concerned about the failure of the National Prices Commission to come to grips with the problems.
Comment on this
First of all, I do not accept the Deputy's assessment of the role of the Prices Commission in this area. I fully accept the need for people to be aware of what all the circumstances are and what gives rise to them. In fact, I recognised that when I made a speech yesterday week giving the type of detailed information the Deputy sought, and I will be only too pleased to let the Deputy have a copy of the speech I made yesterday week which itemised the different factors contributing to the overall prices spiral.
Comment on this
Would the Minister not agree that companies, as he said earlier, are in a position to trade at prices below the maximum orders which he himself has signed? Would that not indicate that the decontrolled price would be for the benefit of the motorist at this point in certain parts?
Comment on this
The difficulty with that — it is mentioned in the question I am dealing with at the moment — is that that could result in people in remote rural areas having to pay a higher price. I believe that would be a highly undesirable development. It is something that would have to be given full consideration if such a decision were to be made.
Comment on this
I fully accept the Minister's point that it would be highly undesirable to have a pricing structure which would result in a dearer product in rural areas but surely the Minister himself has made the point that companies are selling below the maximum.
Comment on this
Would the Minister not agree there is a strong case to be made for decontrol at this point?
Comment on this
As I said earlier, I am awaiting the report — it will be published in the near future — of the Prices Commission on this whole area of pricing maintenance.
Comment on this
May I ask the Minister what the composition is of the review board within the Prices Commission? Is it the normal Prices Commission structure or are they taking advantage of international advisers who could talk about international prices and the fact that multinationals are bleeding the Irish market dry with regard to their invoice prices from the Cayman Islands to Port Talbot and other places?
Comment on this
The Prices Commission are themselves considering the matter and I understand they have engaged an expert consultant of international repute.
Comment on this
Deputy Molony on a final supplementary. We are heading for the Guinness Book of Records in regard to supplementaries at the moment.
Comment on this
Would the Minister indicate in the most definite way he can when the Prices Commission will complete their review and report to the Minister? Secondly, the Minister referred to a speech he made last week in which he analysed the difference between the Irish and the UK pre-tax price and would the Minister be good enough to facilitate me by giving me a similar analysis for the months of January, February and March of this year? I do not ask for the information now but perhaps he would furnish it to me in written form later.
Comment on this
With regard to the Deputy's first supplementary, I cannot give a definite date. I met the Prices Commission last week and I urged on them the need to expedite the report as quickly as possible and they gave an undertaking they would furnish the report in the near future.
Comment on this
It will be in the form of a reply to a question I submitted which was ruled out of order.
Comment on this
I will be only too pleased to give the Deputy any information of a factual nature with regard to price control and increased differentials. In fact it would be extremely helpful if Deputies sought that information.