John Paul Phelan (Fine Gael)

I support the motion proposed by Senator Quinn and seconded by Senator O'Toole. I welcome the Minister of State, Deputy Parlon, and his officials to the House. The subject of inflation was debated in the House three years ago. I share the sentiments expressed by Senator O'Toole with regard to the Government's amendment. I disagree with Senator Mansergh who tries to paint a rosy picture. At a time when inflation is in or around 4% — it was 3.9% for last month — it is important the House debates the issue.

The Government amendment is lily-livered. It notes that Irish inflation in EU terms is now not far off 2%. I have never seen an amendment or a motion worded quite like it in my four and a half years in Seanad Éireann. The Irish inflation rate for last month, as measured by the consumer price index, was 3.9%, a minor decrease from 4% the previous month and 4.5% the month before that. This debate is therefore timely and important on what is a disproportionately high inflation rate compared to our European neighbours.

For the purposes of its amendment, the Government decided to use the harmonised index of consumer prices and that rate, rather than what is acknowledged by everyone to be the actual true rate of inflation in the country——