Micheál Martin (Cork South Central, Fianna Fail)

It is important to point out, as the Deputy has indicated, that the recent increases in inflation are largely due to external factors, namely, higher oil prices and higher interest rates. If we excluded higher interest rates and oil prices, the CPI would have gone up by approximately 2.25% to 2.5%, but I accept we cannot do that.

In terms of our position on inflation, the rationale behind our recent decision on the groceries order was to create a more competitive environment in the retail sector. That arose from strong advice from a number of sources and followed on a serious analysis undertaken by my officials in a comprehensive report on that. That is an example of the type of active intervention we took to remove a barrier to competition and thereby create a better environment for prices in that sector. We met with much opposition from within and outside the House. Competition policy is a key area to try to tackle inflationary pressures with a view to creating greater competition and keenness in respect of prices. In that regard, this year I allocated significant additional resources to the cartel division of the Competition Authority to break up cartels in the economy and have greater enforcement.

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