John Paul Phelan (Fine Gael)

Most people who have objectively studied the cost of goods and services throughout the European Union would acknowledge that we are the most expensive country, or at least in the top two or three most expensive countries, in the European Union, and this has been the case consistently for the past number of years.

It is worth examining last month's figures to determine from where the inflationary pressures are coming. It is also worth pointing out that the inflationary rate in terms of goods has remained flat, around 0%, for a considerable period of time. However, there is significant inflationary pressure in the supply of services; last month's rate was 7.8%. I am anxious to hear what proposals the Minister of State might have to take this in hand. Contrary to the comments of the Minister for Foreign Affairs quoted earlier by Senator Quinn, the Government's actions do not often add up to or equal what they claim.

A 2006 UBS report on prices and earnings stated that Dublin has become the eighth most expensive city in the world, ahead of Paris, Vienna, and the heavily taxed city of Helsinki. There has been significant deterioration in people's purchasing power in the past few years. We have not seen a commensurate level of debate or interest from most quarters. A few Members occasionally raise the issue of inflation increases, but like the public, most Members do not seem to be as interested in this issue as they should be. It has a direct bearing on the euro in everyone's pocket.

I am not convinced by the Government's amendment to the motion, or by its actions. I am not convinced that the Government is interested in bringing the rate of inflation closer to, or even below, the European average. Senator Quinn mentioned that Ireland's inflation has consistently been above the European average for the past five or six years. The Government has patted itself on the back on its financial and fiscal management. As Senator Mansergh said, the Minister for Finance has been awarded an accolade by a newspaper. However, we need to take this issue in hand before it becomes a more burning problem in the future.