Joan Burton (Dublin West, Labour)

What does the Minister have to say to families and people at work who are receiving very little in the way of wage increases? Their wage increases are, to use the Minister's term, heavily moderated through the social partnership process, but they are living in an economy with an inflation rate of 5%. For most workers and their families, the cost of living in Ireland, compared to most European countries, is astronomically high. I accept what the Minister is saying, namely, that much of the rise in inflation is attributable to interest rate increases. Nonetheless, many Irish people who go on holidays to other EU countries this summer — to get away from the rain — will marvel at the cost of a meal out or a basket of shopping in places like Spain or Greece and throughout the EU. Even countries like Sweden which were once regarded as extraordinarily expensive are now good value when compared to the Republic of Ireland.

What will the Government do under the programme for Government to bring down the rate of inflation? Has the Minister any concrete proposals to tackle the rising cost of services? Most of those price rises are driven by Government policy and the fact that in the housing market it is extremely difficult for young families to purchase an affordable home. Leave aside the millionaires — we are simply talking about ordinary families who are trying to put a roof over their heads and service the cost of a mortgage in an economy which is now at the top of the inflation league. What has the Minister to say about this and what is he going to do?

See this speech in context