Michael Ahern (Cork East, Fianna Fail)

It should be noted that the Forfás report studied the inflation figures to the end of the year in January 2003 when the annual inflation rate was 4.8%. The latest figures from the Central Statistics Office for May show a sharp fall in inflation to 3.7%, down from 4.3% in April. Notwithstanding this welcome downward trend, the Taoiseach and the Tánaiste have clearly indicated that the Government's target is to reduce inflation to 2%. An anti-inflation group, chaired by the Department of the Taoiseach, has been convened under the new national agreement, Sustaining Progress, and will draw up and monitor progress on a detailed action plan on inflation. One of my officials is actively participating in this group which has met three times and is due to meet shortly.

The Government is committed to bringing about more competitive pricing throughout the economy by facilitating increased competition. To this end, the powers of the Competition Authority to investigate price fixing and other anti-competitive practices have been strengthened. The authority is conducting extensive examinations of the insurance and banking industries as well as many professional services, including the legal and medical professions.

For competition to be effective, I am aware that consumers must be given sufficient information to enable them to compare prices. In this regard, new price display regulations came into operation this spring, namely, the European Communities (Requirement to Indicate Product Prices) Regulations 2002, SI 639 of 2002, which clarify and underline the obligations of retailers and other traders to display legible and transparent information on prices to consumers.

I also see a key role for the consumer lobby in Ireland. I urge consumers to raise their concerns regarding prices directly with retailers and suppliers and to be prepared to be assertive in shopping elsewhere if they are unhappy with the prices they pay. To assist the consumer lobby, as provided for in the 2001 budget, my Department oversees payment of an Exchequer grant to the Consumers Association of Ireland of €63,000 per annum, the purpose of which is to enhance the capacity of the association to act as a consumer watchdog and advisory body and represent consumers.