Joe O'Toole (Independent)

I thank Senator Quinn for tabling this motion. I agree with him about the importance of dealing with inflation. In 2001 and2002, there were worries that inflation was about to take off again. In the partnership talks, all sides raised the importance of the issue, so much so that we established a group to deal with inflation. Whether we were successful or lucky, it dropped for a period following that but it is now growing again.

I was asked by someone else today if inflation should be the top priority. Economic indicators are crucial to the development of the economy so, yes, it should be. It is one of the crucial first blocks on which we must build as economic indicators and fundamentals are crucial to the development of the economy and in terms of looking after people who are dependent on the economy and the State.

What issues would we have spoken about 15 years ago? They would include unemployment and interest rates, productivity and inflation. It is significant that we have managed, over the past number of years, to deal with many of these other issues. There is always an argument about productivity, but the productivity figures for the Irish economy in the past 15 years show only approximately three years when the rate did not rise faster than any other European country. This is not economic growth but the productive output per worker per hour or day, and we should remember that. We hardly speak about unemployment any more because it is at approximately 4%. Interest rates are definitely coming back on to our radar.

The problem with these issues is we do not see underlying trends. I would not completely agree with some of the nuances of Senator Quinn's arguments, although I agree with the thrust of his points, and crucial among these is that there is no point arguing about the distribution of wealth unless wealth and prosperity is created. I always made this argument when I was a representative in the trade union movement. I agree that inflation is a crucial element in that regard.

As a trade union official at national negotiations I had a simple bottom line of subtracting the inflation rate from the growth rate in the economy, and this was the figure people needed to get. Inflation immediately becomes a bedrock part of negotiation, and it is the same for employers, who consider its cost impact. Everybody considers it fully in all negotiations. Ignoring it, or as Senator Quinn stated, to see it as the elephant in the room to which we would not refer, would be ridiculous. We must deal with it.

We should consider it in a way that people will understand its importance. In the 1970s and 1980s, when inflation was completely out of control, our money was worth nothing, and it did not mean anything to us as time went on. Where are we now on the inflation issue? Both the Government and the Opposition do many people a disservice in this country with the type of discussion taking place on prices. Senator Quinn's point on this is interesting, and that is the type of focus we must have. The regulator made a mistake on fuel and electricity costs. It sounds as if he was listening to the chairman of BP, who is consistently telling us the price of oil will increase year on year.

I hope I am not shot down from any direction after my next comment. I do not subscribe to the general idea of the rip-off republic or that this is the most expensive country in Europe. I travel a lot but I never do so without checking prices. All last weekend I heard people correctly stating that it was disgraceful that CIE was increasing prices. It is good people would object for the reasons we have already stated, but it is ridiculous for people to say we are the most expensive in Europe.