Leo Varadkar (Dublin West, Fine Gael)

I move:

That Dáil Éireann:

notes with concern that inflation in Ireland remains higher than the eurozone average and noting in particular that the ex-tax price of diesel, petrol and home heating oil is 10% to 20% higher than the EU average;

notes the Government's failure to rein in price increases created directly by Government Departments and agencies (for example, prescription drugs, accident and emergency, school transport and hospital charges) or sanctioned by regulators (for example, the Commission for Energy Regulation; the Taxi Regulator and the National Roads Authority), and concerned at the impact that these increases will have on consumers; and

notes with concern that many consumers are travelling to Northern Ireland or overseas to purchase goods and services;

calls on the Government to:

reverse the decision to increase the higher rate of VAT in the budget;

freeze Government charges and levies imposed on businesses and consumers;

require regulatory organisations to hold public hearings prior to decision on price increases; and

outlaw surcharges imposed by retailers on credit cards, debit cards, direct debits and e-payments.

I wish to share time with Deputies Joe McHugh, John O'Mahony, Seymour Crawford, Frank Feighan and Joe Carey.

Ireland is deep in recession with 100,000 people losing their jobs in the past year and perhaps the same number will lose theirs in the year to come. Incomes are stagnant for most people and take home pay will reduce next year, largely as a result of the tax increases introduced in the budget. Inflation is beginning to fall and it is likely to fall much further in the coming months but that does not mean issues such as rip offs, value for money and consumer protection are unimportant.

As people's incomes reduce and household budgets are squeezed, consumer issues and value for money become more important. We tabled the motion in this context. It states, "Dáil Éireann notes with concern that inflation in Ireland remains higher than the eurozone average and noting in particular that the ex-tax price of diesel, petrol and home heating oil is 10% to 20% higher than the EU average". The consumer price index outlines our inflation rate but the HIPC rate has levelled off and is slightly below that. The motion further notes the Government's failure to rein in price increases created directly by Departments and agencies, for example, in the cost of prescription drugs, accident and emergency, school transport and hospital charges, to which I will refer later. It is particularly relevant in the context of the Government's amendment which "recognises the Government's commitment to tackling inflation in areas over which it has direct influence". I look forward to refuting that later.

We are concerned at the impact the increases will have on consumers and the motion notes with concern that many of them are travelling to Northern Ireland or overseas to purchase goods and services. We call on the Government to take action in this regard, first, by reversing the decision to increase VAT in the budget; second, by freezing charges and levies imposed on business and consumers; third, by requiring regulatory bodies to hold public hearings prior to making decisions on price increases; and, fourth, by outlawing surcharges imposed by retailers on credit and debit cards and e-payments.

In tabling the motion, Fine Gael seeks to draw the attention of the public to the failure of Government to pursue the pro-consumer policies and pro-competition polices that it promised. Almost two years ago, the consumer strategy group made 27 recommendations to Government. To date, only nine have been fully implemented while four are in train. In the case of another 14, or more than half, nothing has been done. When it comes to reports produced by the Competition Authority, the position is similar. Reports on barriers to competition in transport, casual trading, engineering, insurance, banking, health insurance, architecture, optometry, the legal profession and dentistry have been published in recent years and, by and large, they have been ignored and not implemented by the Government and its agencies.

In recent years, the Government has been the driving force behind inflation. Inflation on Government provided and regulated services has run at double the average rate of inflation. The relentless increase in Government-imposed prices has continued unabated. In recent months we have been subjected to massive increases in the price of electricity and gas, despite the significant fall in commodity prices. The cost of electricity reduced by 1% when these increases should have been reversed. Other regulators have got in on the act with the Taxi Regulator increasing fares by more than 8%, even though the vast majority of drivers who made submissions requested no increase.

The key question is where Ministers stand on this. The Government amendment "recognises the Government's commitment to tackling inflation in areas over which it has direct influence". The Minister for Health and Children increased accident and emergency charges by 10% in 2008 but that was not enough and she will increase them by 52% next month. Overnight fees for private patients in public hospitals will increase by 20% in the same month while public patients face a 14% hike. Potentially there may not be inflation next year. This increase equates to infinity times the rate of inflation. The Minister for Justice, Equality and Law Reform is also in on the act by increasing the fee new Irish citizens must pay on naturalisation. It is presumably part of Deputy Conor Lenihan's integration policy to tax people when they become citizens. The fee will increase by 50% from €684.70 to €950. The Minister for Transport has allowed CIE to increase fares by 5% and Luas by 4.2% to meet the cost of the pay deal and to take account of the reduction in the number of people travelling on public transport as a result of the recession and emigration. When every other company in the economy loses business, it does not increase prices. Hotels in Dublin are offering major discounts this week and next week. That is how industries and State companies should respond to a downturn. However, the Government's view on this is very different. Even the Minister for Defence has got in on the act, increasing the cost of a cruise on board The Asgard II by 15%.

See this speech in context