Richard O'Donoghue (Limerick County, Independent) | Oireachtas source

Inflation has now reached 6.9% and it is predicted to go to 8.5%. If Labour Party Members understood business, they would understand that a wage rise now would increase inflation, putting people further into poverty. We need to reduce the cost of living to stop inflation. How do we reduce the cost of living? We reduce electricity costs and fuel costs. SMEs at the moment find it hard enough to keep going with the escalating prices. Who are the only winners up at the moment with inflation? It is the Government. Who are now trying to get the Government to earn more money? When wages increase, the tax also increases. Who gets the tax? It is the Government. What does it do? It wants to put businesses, which are already struggling with the highest insurance and other running costs in Europe, out of business.

The Labour Party Members should have been concentrating today on reducing inflation by reducing the taxes the Government is taking. We have already said it is taking €57 for every €100 of fuel sold. They want to raise wages so that the Government can take more in tax from people who are already struggling. That is because they do not understand business. Businesses employ people allowing them to put food on the table for their families. The Government needs to reduce VAT and other tax rates to make sure people in this country can live and we are not driving up inflation. However, we should be driving down the taxes the Government is taking from every person in this country.

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