Bertie Ahern (Dublin Central, Fianna Fail)

The regulator is implementing legislation passed here setting up the Commission for Energy Regulation to ensure security of supply and that we can keep our electricity and gas companies going. That is the job of the commission. For a sustained period the Electricity Supply Board was able to provide electricity with no increase in cost, but that changed because of the international position.

On the question of pay increases, I have already said to Deputy Rabbitte that it has happened previously that the rate of inflation matched the rate of the pay increase and that does balance out things in wage terms. However, there are other issues related to tax which weigh the balance in favour of the worker. It is never welcome that inflation should eat into pay increases. However, it has happened a number of times in recent years and we have been able to counter it. We must try to do so again to the best of our ability, and I believe it is possible. We did it in 2003 when we halved inflation in a very short period by combined action on the part of the Government, the social partners and relevant agencies. We can do so again. I do not agree with the Deputy's theory. Without centralised agreements there will be a spiralling cycle of wage increases pushing up inflation, reducing the value of wage increases to workers.

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