Oireachtas Joint and Select Committees

Wednesday, 1 June 2022

Committee on Budgetary Oversight

Fiscal Assessment Report: Irish Fiscal Advisory Council

Photo of Mairead FarrellMairead Farrell (Galway West, Sinn Fein) | Oireachtas source

I, too, was trying to use the Internet but it was not working. I thank the witnesses for coming in. Although I have meetings with them online, as someone who was elected just before Covid, I think this is my first time seeing them in person. It is nice to meet them in person. I have a few questions prepared but I am also interested in some things that arose during the discussion. I am sure the witnesses are more aware of this than I am but I have noticed a particular issue in the media. There is one thing that is thrown out there but you almost cannot discuss it. Deputy Canney referred to wage increases and the impact they will have. I have noticed that in a lot of commentary, both within the Dáil and in the media, as soon as any kind of increase in wages is mentioned, people say wage prices will spiral and increase inflation. I would be interested in the witnesses' views on the concept of the wage-price spiral. Where do we need to be at in order for that to happen? The factors causing inflation are energy prices and supply chain issues. A few weeks or months back, there was a graph in the Financial Timeswhich showed that since 2020, wages in the eurozone did not really increase so that has not been the cause of inflation. I would be interested in the witnesses' views on that. Sometimes we have a very closed conversation nationally on certain topics. People are struggling. I have my own views on the matter but I would be interested in what the witnesses have to say.

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