Pat Rabbitte (Dublin South West, Labour)

Does the Taoiseach or any member of his Government have any appreciation of the impact of rising prices at the moment? Did the Taoiseach look at the CSO figures quoted in the Irish Examiner today, which show that food prices have increased by 16%? The article states that 37 of 50 items in the shopping basket have increased "substantially". On top of that the Irish Independent quotes IBEC's predictions for the future. It believes that shoppers are likely to be hit with massive increases for the cost of basic food and that bread, breakfast cereals, fruit juices and canned foods are set to rise in the coming months, with some items to increase by as much as 20%. Food has already increased by 16% and we have those projections for the future. We have had a 23% increase in gas prices and a 12% increase in ESB charges. Bus and rail fares, toll charges and domestic waste collection charges have increased. The European Central Bank has in effect promised that next month there will be another hike in interest rates.

Is the Taoiseach concerned about the recently concluded pay agreement, which gave a pay increase of 10% over 27 months, with the first phase being 3% and the second phase 2%, given the prices environment in which we are operating? Can he explain why both he and the Minister for Enterprise, Trade and Employment told us that after the striking down of the groceries order food prices would fall?

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