Mr. Sebastian Barnes:

It is a fascinating question that goes to the heart of the issues. IFAC does not take a view on distribution or those kinds of questions. From the point of view of public finances, what is happening to different groups in society is very important because the State, through its policy, is committed to helping some people in society, the less well-off, but does not provide welfare to everyone. That is the basic system. It means that when a shock hits the less well-off, it will cost the Government more and that will have an impact on the public finances. That is where it becomes something about which IFAC would think.

The prices of energy and food, which are largely imported goods, are high. An economics textbook would state that is a situation that does not create winners and losers. We are all losers in some ways because we are having to pay more to foreigners. They gain but we do not gain anything from that situation. There are probably exceptions but the general rule with regard to oil and energy price increases is that everyone is worse off. However, we are not all worse off to the same degree. It matters a lot more to people who have low savings and are struggling than it does to those with higher incomes. That is why support needs to be targeted at those on lower incomes. That shock alone is one that only creates losers. However, there is a question about how one manages-----