Phil Hogan (Carlow-Kilkenny, Fine Gael)

What the Minister said is absolute nonsense. Inflation has nothing to do with international trends but everything to do with domestic policy. Price increases in the domestic services sector in this country are twice what they are elsewhere in Europe. The increase in inflation is not due to higher energy prices. Energy price inflation has declined sharply since 2006 from 14.1% in the first quarter to 1.1% in the final quarter.

The Minister mentioned the cost of doing business in Ireland and in its cities. Will he consider the cost comparison between Dublin and Manchester in 2006? For waste disposal, Dublin was 100% dearer; for electricity, it was 50% dearer; for gas, it was 20% dearer; for insurance, it was 40% dearer; for IT services, it was 160% dearer; and for legal services, it was 35% dearer. It is nonsense for the Minister to say everything is great and that we have no difficulty with cost competitiveness and for the Government to abdicate its responsibility for these costs.

Will the Minister indicate the measures he will take to ensure we reverse that trend and ensure Government policy is such that there is not a repeat of the 55.5% net increase in the various services I outlined relative to the rest of the European Union?

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