Michael Ahern (Cork East, Fianna Fail)

I thank all the Senators who have contributed to this very important debate, especially Senator Leyden for initiating it. A few points were raised to which I would like to refer but the general consensus from all sides of the House was that our prices had increased substantially in recent years. The question of who was to blame was raised by Senator Coghlan, especially on foot of the report in which Government influence on inflation was mentioned. However, it is important to point out that there are many areas where the Government influenced category includes products subject to excise duty where price increases have occurred without any increase in duties, especially tobacco, which have contributed a significant amount to the inflation increase in the past year or so. An increase in the cost of tobacco, in particular, can be of relevance, especially to health. We have all become much more aware in recent years of the knock-on costs to health care of people smoking.

Senator Leyden raised the question of consumer assertiveness, as did Senator Hanafin. I suppose it is a trait of our nation that we do not complain when we get bad service, be it in shops, restaurants or anywhere else. We should do so. The anti-inflation group is examining the question of greater consumer assertiveness, which will be considered in the new initiative to stimulate greater price sensitivity among consumers. Senator Leyden also raised the question of supporting the Consumers Association of Ireland to which a grant of €63,000 was made. How we can move forward will be considered in due course in consultation with it.

Senator Quinn asked whether inflation was a Government priority. I assure him that it is. The programme, Sustaining Progress, highlights it as such for the nation. The Senator also raised the question of insurance. The Tánaiste has made a reduction in insurance costs one of her top personal priorities. Senators will be aware that in the previous Government Deputy Noel Tracey was Minister of State responsible for insurance matters. He commissioned a report on motor insurance, known as the Motor Insurance Advisory Board report which was issued at the beginning of 2002. It set out 67 recommendations, many of which have now been put into operation. Many more still have to be implemented. Those decisions and recommendations have already had some success. Many of the conclusions and recommendations were applicable to such areas as employer and public liability insurance. There is an interim Personal Injuries Assessment Board. A statutory board will be set up by 1 January 2004 under legislation being prepared. Its establishment and the implementation of the recommendations will have a considerable impact on insurance costs. This is important.

Senator Quinn spoke about the need for competition. I took it from his statement that he was in favour of free trade and laissez-faire in that area. While we must have competition, we must also take note of the social impact, if we leave matters completely free, on small towns and villages, especially their grocery shops.