Bernard Durkan (Kildare North, Fine Gael) | Oireachtas source

I thank the Chairman.

I will ask Dr. Kelly about the hedging which he referred to in the energy market. To what extent has anybody in authority investigated the manner in which it works? We all understand how it works - they have to project ahead and when the shock is coming, they hedge - but when they revert, it is not so clear. There is always the question among both commercial and domestic consumers that somebody out there is hiding something from them and that it is impacting on them. That is one question.

The other question is in relation to inflation. When is it possible to tell the effect that deflationary measures will have in actually reducing inflation? How long does it go on? It must be possible. For instance, would it have been better to have a short sharp rise in the beginning, or would it be better to do that now, keeping in mind that the consumer in every shape and form will be affected anyway?

If there is a consequent increase in the cost of living, that is a negative from the point of view of any government anywhere. At the same time, there is an expectation on the part of the general public. They have been under the cosh for some considerable time over the past couple of years and they worry about the possibility of more of the same. We know that housing is a major cost with respect to wages and so on and so forth. What is the answer to it? In the 1970s, we had various answers in relation to inflation and where it was coming from, importing inflation and so on. Right now, there is a cost-of-living crisis, there is a crisis of war and a lack of supply. Decisions have to be made. Yet, many replacement energy facilities have been put in place. I wish to know, if possible, to what extent we are nearing a position whereby we will not be affected to the great extent that we are now by fluctuations in the energy markets abroad.