Terry Leyden (Fianna Fail)

We also had to ensure a steady line was followed. We decreased inflation. A major priority for the Minister for Finance, Deputy Cowen, is to ensure inflation does not rise. Certain factors add to inflation, such as the cost of drink and tobacco. Sales of those items are very difficult. Speaking in the Dáil in October, the Minister welcomed a reduction in inflation and undertook to retain his commitment to restraining it further. Undoubtedly, the promise will be reflected in next month's budget.

Many causes of inflation are outside the remit of Government control, such as high oil prices and the European Central Bank increasing rates. The Commission for Energy Regulation will review the proposed increase of 19% in electricity prices from next January because the cost of oil has dropped dramatically. The 19% increase would greatly add to inflation and a review should be done now.

I agree with the Minister for Finance, Deputy Cowen, that tackling the problem of inflation requires a response from all sectors of society, not only the Government, as many of the domestic driving forces of inflation are outside the direct control of the Government. The Government has responsibility for many actions to contain inflation. For example, excise duties have not been increased in the past two years and, as the Minister for Finance pointed out, the groceries order was removed. I debated that particular issue, as did Senator Quinn. It is alleged that it will lead to greater price competition, but that has not yet been proven. In addition, the major players have not responded to the situation. In responding to the debate, Senator Quinn may indicate, given his experience in that field, what has happened since the groceries order was lifted. Members of the Joint Committee on Enterprise and Small Business argued against that decision. In fairness to the Government, however, it made a decision which it felt was in the best interests of consumers.

The Minister for the Environment, Heritage and Local Government specifically requested that to support competitiveness in the economy and protect the interests of communities, local authorities should exercise restraint in setting any increase in commercial rates and local charges for the following years. There is a certain lack of restraint as regards the increase in rates and the Minister knows the large burden that is placing on small businesses. Councils must raise money but they are now raising planning charges and increasing rates. Individual commercial rate payers not only have to pay rates but must also pay water rates on top of other service charges, which places a major cost burden upon them. The big supermarket chains have enormous rates and service charges, which constitute a burden. They must recoup such costs, so eventually the consumer pays all. That is the reality.

The Government has continually invested in public infrastructure, which will enhance our ability to produce more goods and services more effectively and, therefore, help keep down inflation. The eurozone's annual inflation was 1.6% in October 2006, down from 1.7% in September. A year earlier, the rate was 2.5%. It is noteworthy that alcohol and tobacco were among the items with the highest rates of inflation. Coming up to Christmas, there probably will not be much restraint in that regard.

I welcome the motion but we have had to table an amendment. Senator Norris would like everyone to love each other so that no amendment would be tabled. If the Independents had tabled this motion, we may have been agreeable to some sort of compromise. However, when the motion is linked to a party that has been responsible for more inflation in this country than any other party, we certainly could not be associated with the motion.