Brian Cowen (Laois-Offaly, Fianna Fail)

The Deputy is aware that two weeks prior to the budget I cannot discuss issues of that nature in any level of detail. I can only provide a general indication of the Government's success up to now and refer to its and the previous Administration's intention to protect living standards of those in receipt of social welfare payments. We have been extremely successful in removing hundreds of thousands from the tax net. Some of the individuals concerned paid tax under previous Administrations, of which the Deputy was a member.

I take the point regarding the need to ensure the living standards of those on social welfare payments are protected. The price of food and non-alcoholic beverages rose by 4.4% in October's CPI. However, as this sector only accounts for less than 12% of the total weighting in the index, its impact would only have contributed approximately 0.5% to October's overall CPI increase. Food price inflation has largely been driven by increases in raw material prices in global markets. This matter is not within our control but, in the light of global developments, we must pay close attention to it.

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