Seanad debates

Wednesday, 2 July 2003

Forfás Consumer Pricing Report 2003: Statements.

 

The answer is to create and encourage competition. In doing so the State must make decisions which will have consequences. For example, in the area of health I was stunned to discover that the VHI was sending people abroad – Spain, France or even South Africa – to have operations because it was cheaper to have them done there than here. These are the kinds of decisions we will have to make if we are to have open competition. I am a great believer in competition which we must encourage. In doing so we will have to balance the benefits to the State against the costs. In doing so it may be decided that the benefit of low inflation is not worth the other consequences of deciding to take a course of action. For example, there is little doubt that it is State policy to have a high price for alcohol and tobacco products, which we would all agree is acceptable, but when we blame the State for being a major cause of inflation, we must recognise that we, as legislators, have made such a decision. We must ensure we strike the right balance when making future decisions.

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