Enda Kenny (Mayo, Fine Gael)

Right. I note the Taoiseach met the Irish Congress of Trade Unions last week and had a lengthy discussion with it. He is due also to address it tomorrow. This is the last occasion on which he will be in the House until 26 September and if the ICTU wants him to attend its conference which continues until Friday he could certainly go on Thursday or Friday. It is a slight to the House to have him bail out again on Wednesday morning but I cannot do anything about this.

What is the Taoiseach's view of the reasons the Government has failed to keep down inflation? The rate is now 5%, more than twice the European average and the highest in the euro zone. This is a cause of considerable concern among a broad range of people working in the economy. Government spending in the past seven years has been increasing way above the growth in nominal income. This is causing inflationary pressures in its own way. What pro-consumer measures has the Government introduced in the area of sheltered services that will protect the consumer from an inflation rate that is doggedly at 5% or above?

Following a meeting with the Irish Congress of Trade Unions and in consideration of what the Taoiseach will say to it tomorrow, unions have been warning that they will seek further pay increases if the inflation rate is not controlled and Government policies continue to fuel inflation directly. What is the Taoiseach's answer to this? Trade unions state they will be forced to seek pay increases because of the reduction in real incomes because of the inflation rate as a consequence of policies proposed by the Government. What is the Government's response to this? In view of the fact that it has been joined by two members of the Green Party as Ministers, will the Taoiseach change the social partnership agreement in order that it will include a third sustainability pillar with energy targets as a central issue?

I am sure the Taoiseach will have seen the report from Credit Suisse which indicates a growth rate of 3% this year. Does he have any belief in this or does he disregard it? If he gives it credence, does he believe the Towards 2016 agreement can be implemented?

Has the Taoiseach had discussions within the Cabinet about the consequences of the Government's failure to reduce the inflation rate which is causing serious concern? Given that a representative of the Progressive Democrats is involved — I am aware the mother of the Minister for Health and Children, Deputy Harney, is deceased — with members of the Green Party, what is the approach the Government intends to take in the coming months to attempt to reduce the inflation rate?

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