Michael McNamara (Clare, Independent) | Oireachtas source

I ask the Minister about the cost of living and what will be done about it. Energy prices are rocketing. We saw two energy companies, Budget Energy and SSE Airtricity, announce cost increases of 29% and 9%, respectively, in September. Our laoch thar lear or dhroimeann donn dílis who will save us, Equinor, has pulled out of the Moneypoint project which hopefully will not scuttle it but will certainly delay it. People are seeing increases in the costs of their shopping baskets already. Almost all of the big agrifood companies published warnings about increasing costs through the late summer and September. Somebody who works in the agrifood sector and for whom I have great regard told me he expected to see food inflation hit 40% by the end of next spring. A 40% increase in the cost of a shopping basket is huge on top of energy costs.

As regards the construction industry, the CSO has announced that this year, the cost of structural steel has increased by 26.7%, the cost of rough timber has increased by 60% and the cost of plaster has increased by 20%. I do not know what the Government can do about all of these increases individually, with the possible exception of timber. The lack of felling licences is inexplicable when the Department of Housing, Local Government and Heritage is being warned about the costs of materials. Of course, these do not only apply to timber. We do not produce steel in this country but the lack of felling licences is inexplicable.

On the broader issue, what will be done? It seems clear now that we are in a period of inflation, which is estimated to have been 3.79% in September. It is 3% in Germany. The Financial Timesyesterday announced that the Federal Reserve was to taper its stimulus programmes. I accept it has been a long time since monetary policy for Ireland was set by the Minister for Finance. It was set for a very short period given the peg to sterling and that short period is not really a glowing reference. However, the Minister is also the chair of the group of eurozone finance ministers. Is inflation a concern of the Minister and his colleagues? What will be done about it because monetary policy is obviously the response? The Minister does not control it; it is controlled by the European Central Bank. Professor Philip Lane is the chief economist in the ECB and its head is not an economist. I am not suggesting that monetary policy will be set for Ireland, which is on the periphery. Clearly, it will be set for Germany. Does the Minister accept that inflation is a concern everywhere? Does he expect to see counter-inflationary measures? What would he like to see done about inflation because ordinary people cannot bear the rising costs?

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