Pat Rabbitte (Dublin South West, Labour)

The greatest benefit of the past 15 years of economic expansion has been that we have greatly increased the number of people at work, but I am sure the Taoiseach will agree that a surprisingly large number of people are on modest incomes. They are confronted with a situation where the entire value of the pay terms provided for in Towards 2016 is being eaten up by inflation.

Will the Taoiseach address the two specific issues raised by congress? The average mortgage has increased by €320 in less than two years, which is a significant burden on many people. How does the Taoiseach intend to respond to the congress recommendation that the tax relief on mortgages be examined in that light? What is his response to the second proposition from congress relating to the VAT rate of 21%? I presume the Green Party Ministers will join congress in supporting that proposition which was a cornerstone of their party's policy platform in the general election.

In the Taoiseach's press release issued after his meeting with IBEC and ICTU, he stated: "the Government and IBEC and ICTU would engage in the intensified co-operation in responding to the inflationary pressures within the framework of the Pay Agreement, and especially through the work of the Anti-Inflation Group". I have heard what the Taoiseach said generally, but what will the intensified co-operation focus on? The anti-inflation group has been in existence since the previous agreement, but will the Taoiseach tell the House two or three practical measures recommended by that group and what action has been taken on those recommendations?

In respect of a little matter of unfinished business between the Taoiseach and me before the last general election, he will remember that he inadvertently told me that 90 labour inspectors were in place. It was an error as he was reading his notes upside down and he never intended to say that. We found out that there are 34 labour inspectors. How has that matter been proceeding since then and when will the figure of 90 referred to before the general election be reached?

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