Tommy Broughan (Dublin North East, Labour)
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Question 155: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the results of a recent worldwide cost of living survey (details supplied) which found that Dublin was the 13th most expensive of the 144 cities surveyed and the eighth most expensive in Europe; the steps he will take to combat increases in the cost of living reflected in these findings; and if he will make a statement on the matter. [25417/05]

Micheál Martin (Cork South Central, Fianna Fail)
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I am aware of the findings of the Mercer Human Resource Consulting 2005 Worldwide Cost of Living Survey. This survey, which was conducted last March, measures the cost of a wide range of items such as housing, transport and food.

An increase in the cost of living has been one of the consequences of the rapid economic growth that Ireland has enjoyed over the past decade — indeed, it is worth noting that the Mercer survey found that many cities in the new EU accession countries have risen sharply in ranking this year as they make strides to bring their economic infrastructure up to EU standards.

In this context of trying to balance economic growth and the cost of living, the annual economic review and outlook, published by the Department of Finance on 18 August last, found that inflation continued to moderate in 2004. The consumer price index fell to 2.2% from 3.5% in 2003. The latest Central Statistics Office figures show that the annual rate of inflation fell from 2.4% to 2.3% between July and August last. I would also like to direct the Deputy's attention to the finding of the National Competitiveness Council's annual competitiveness report 2005 released on 7 September last that Irish inflation converged towards the EU average over the past 12 months. This area is one which continues to be monitored by the anti-inflation group established under Sustaining Progress, which is chaired by the Department of the Taoiseach and on which my Department is represented.

I am firmly of the opinion that promoting competition and empowering consumers are key policy instruments in this area and I support the ongoing work of the Competition Authority, the Office of the Director of Consumer Affairs and the interim board of the National Consumer Agency, which operate under the aegis of my Department.