Kieran O'Donnell (Limerick East, Fine Gael)
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Question 75: To ask the Minister for Finance if he has monitored the impact of trends in sterling and international commodity prices on Irish price inflation; and if he will make a statement on the matter. [22279/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Achieving a moderate rate of inflation is a key economic policy priority given its importance in helping to restore national competitiveness. Due to the relatively high rate of inflation that we have experienced over the past number of years, the price level for consumer goods and services in Ireland is some 20% above the euro area average. In light of this, the Government is committed to monitoring developments in prices on an ongoing basis.

As measured by the harmonised index of consumer prices, annual inflation in Ireland was 3.3% in April 2008. Using the domestic measure, the consumer price index, annual inflation was 4.3% in April 2008. This represents an improvement on the consumer price index inflation rate of 5% recorded a month earlier. As in many other countries, the global rise in food and oil prices is continuing to impact on headline inflation in Ireland. In the year to April 2008, food costs rose here by some 8.4%, contributing 0.9% to the annual increase in prices, while the cost of energy rose by 7.3% and contributed 0.6%.

As regards exchange rate developments, it is well known that sterling has depreciated sharply against the euro in recent times, falling by around 15% in the year to April 2008. Given that approximately one third of imports to Ireland are from the UK, I would have expected to see this fall in sterling exerting some downward pressure on inflation. I am disappointed this does not seem to have happened to date. This issue is also of concern to the Government and my colleague, the Tánaiste and Minister for Enterprise, Trade and Employment, has been actively engaging with those concerned to see what steps can be taken to resolve the matter. As the depreciation in sterling is passed through, I anticipate a moderation in Ireland's inflation rate later this year.

In terms of the Government's response to recent price developments, I point out that as a small open economy, we are largely a price taker, which means we have few direct measures at our disposal to reduce the inflationary impact of the global rise in commodity prices.

Notwithstanding this, the Government is committed to doing what it can. In the short to medium term, this includes implementing responsible fiscal policies and promoting competition and increased price transparency through the work of the Competition Authority and the National Consumer Agency.

Additional information not given on the floor of the House.

Over the longer term, the considerable investment in the agricultural and food industries that the Government is currently undertaking as part of the national development plan will help improve the productivity and competitiveness of these sectors, with subsequent gains for the Irish consumer.

Finally, from a competitiveness perspective, I stress the importance of ensuring that the externally driven price increases we are currently experiencing are not exacerbated by internally generated second round effects. Securing a sensible and sustainable outcome to the current round of pay talks will have an important role to play in this respect.

Kieran O'Donnell (Limerick East, Fine Gael)
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The Minister has not addressed the issue of what the Government is going to do. In a market driven economy such as ours, the large UK multiples will charge higher prices if they can get away with it. Will the Minister instruct the National Consumer Agency and the Competition Authority to work together? My party believes the two agencies should be combined into one stronger body. By publishing sterling and euro prices across a range of sectors, they could ensure the proper competition which is currently missing from the market.

I take exception to the Minister's refusal to apologise for his comments on whinging. He is speaking to consumers and businesses. The latter provide the jobs which, along with rising prices, are people's biggest concern at present. He has done absolutely nothing in that regard. Certainly there have been increases in the international price of oil, but the Government has done nothing to quell domestic inflation. For the past seven years, it has contributed to half of all non-mortgage based inflation.

Will he and the Tánaiste instruct the National Consumer Agency and the Competition Authority to publish on a weekly basis real time prices across a range of products so people know whether they are getting value for money from UK multiples? Will he apologise and withdraw his comments about whinging? He is speaking to people who are worried about their jobs.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Tánaiste has been actively engaged with the National Consumer Agency and the Competition Authority with a view to taking positive action on this matter.

Kieran O'Donnell (Limerick East, Fine Gael)
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Will the Minister do anything positive?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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A parliamentary question on that matter should be addressed to the Tánaiste. I do not have responsibility for issuing directions to these bodies——

Kieran O'Donnell (Limerick East, Fine Gael)
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You were not long getting out the door.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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——but I do share the concerns expressed by Deputy O'Donnell and I have raised them with the Tánaiste. I am sure she will take appropriate action to address the matters raised by the Deputy.

Kieran O'Donnell (Limerick East, Fine Gael)
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The Minister did not deal with my request for him to withdraw his remark on whinging.

Seán Ardagh (Dublin South Central, Fianna Fail)
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That is not relevant to Question No. 75.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy did not give me an opportunity to reply. I was about to deal with his question. I already dealt with it in the context of Deputy Burton's query and I am quite happy for Deputy O'Donnell to join her on a list of those who objected to my use of the word. If Deputy O'Donnell reads the article, he will realise that I made a point to the effect that we cannot just complain about increases in the price of oil. We have difficult choices to make.

Kieran O'Donnell (Limerick East, Fine Gael)
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This shows a lack of understanding on the Minister's part with regard to that with which people in business are being obliged to deal. There has been a 30% increase in the price of diesel during the past year. The people to whom I refer work hard. It is an insult for the Minister to use the term in question and I ask him to withdraw it.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have a full understanding of the difficulties being experienced by those to whom the Deputy refers. Unlike him, however, I do not just live in a world of politically correct language. I live in a world where people in our economy are experiencing real problems.

Kieran O'Donnell (Limerick East, Fine Gael)
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What is the Minister going to do about this matter?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I do not believe trading insults in respect of terminology will solve the problem.

Kieran O'Donnell (Limerick East, Fine Gael)
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What is the Minister going to do?

Seán Ardagh (Dublin South Central, Fianna Fail)
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Will Deputy O'Donnell allow the Minister to respond? We must proceed to the next question.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The first point I made in the article to which the Deputy refers is that the price of oil is something outside the control of the Government and the Parliament.

Kieran O'Donnell (Limerick East, Fine Gael)
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The Minister should deal with the——

Seán Ardagh (Dublin South Central, Fianna Fail)
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We are going too far now. We must proceed to Question No. 76.