James Bannon (Fine Gael)

I welcome the Minister of State to the House and I congratulate Senator White for lecturing the Government on its bad and ill thought out policies on competitiveness and consumer protection. The Senator is listening to the people on the ground, unlike some members of the Government. It is not often that I use the words "equality and fairness" when referring to the Government. However, today I wish to point out the interesting fact that under this Government there is a parity for our citizens and visitors alike — they are both being ripped off in equal measure.

The Competition Authority's strategy statement 2003-05, states that credible enforcement against anti-competitive behaviour is important in maintaining an environment in which markets benefit consumers. Fine Gael's rip-off Ireland website is a continuing testament to such anti-competitive and anti-consumer behaviour. As I have stated in the House on other occasions, the Government is throwing its citizens to the financial sharks. The other side of the House can deride Fine Gael's rip-off Ireland site and make accusations such as those made by Senator Leyden yesterday in respect of its effect on tourism, but the truth is that tourists are not fools and once bitten, twice shy, with the inevitable effects on our tourism industry.

In the four years to May 2004, the average price of Irish goods and services increased by 22% relative to our trading partners. Ireland's consumer price inflation has exceeded the euro zone and 15 EU countries for the past seven years. By 2003 Ireland was almost on a par with Finland as the most expensive country in the EU. Ireland is now the most expensive country in the euro zone for food, non-alcoholic beverages, tobacco and housing rental. It is the second most expensive country for alcoholic beverages and for the services of restaurants and pubs.

As with prices, wages in Ireland have been rising faster than in other EU countries for a number of years. There is considerable evidence to suggest that both business costs and consumer prices here are now out of line with other advanced economies. Our relative cost position is not justified by economic fundamentals and poses a threat to our continued economic success.

Improving Ireland's international costs competitiveness must be a high priority for the Government. Consumers must be entitled to know whether they are getting value or money. Retailers must not be able to blame high prices on high operating costs without the consumer being party to information about the retailer's turnover and profit. In order to achieve higher living standards and to provide more jobs, it is essential to increase the output and added value of goods and trade services which are produced by private and public enterprises. No corporate enterprise can be above accountability and none should have a get-out clause when it comes to declaring its profits for public scrutiny.

There is no escaping the reality that Ireland must and can achieve a higher level of industrial and commercial output. This is vital not only to the generation of additional jobs and higher living standards, but as a guarantor of all social benefits. A higher level of output in Ireland will have to be achieved in a less protected background. With 25 member states in the EU, less protection inevitably means the survival of the fittest. Ireland must offer a competitive environment for enterprise and enterprises operating from an Irish base must themselves be competitive in areas such as innovation management and quality as well as in terms of productivity. Great strides have been made in recent years in terms of the creation of a competitive environment for enterprise thanks to the foundations laid by former Deputies Alan Dukes and John Bruton. Ireland has an inflation rate lower than the EU average. Interest rates have fallen but a number of key business costs must be reduced if we are to maintain our competitiveness.

The fall in the cost of insurance for many businesses and consumers over the past year has demonstrated the potential of lowering prices for consumers and improving cost competitiveness for businesses. Shame on the Government for not bringing costs into line with other EU countries. We need to upgrade the following public economic infrastructure areas — transport, energy, education, health care, training, environment services, telecommunications, modern language training, airport development and tourism.

In terms of industrial development, it is vital to emphasise the important part technology can play in job creation. The Government performance in this area has been dismal in failing to harness more jobs and earning higher living standards.

Without Government action, the combination of the recent acceleration in Irish consumer price inflation, alongside the growing risk of a sharp decline in the value of the dollar against the euro, leads me to conclude that the possibility of a further deterioration in Ireland's cost competitiveness is all too possible, putting employment and living standards in jeopardy throughout the country.

In my own area of Longford, there is disgust and disappointment at the failure of the Cardinal Health project, with the loss of 1,300 jobs, and the let-down of being left out of the national spatial strategy with all the ensuing benefits.