Bernard Durkan (Kildare North, Fine Gael)
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Question 173: To ask the Minister for Finance if action has been taken or will be taken to ensure that the strength of the euro is reflected in all financial transactions to the advantage of the Irish economy having particular regard to the purchase of goods and services from countries with weaker currencies; and if he will make a statement on the matter. [22282/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 174: To ask the Minister for Finance if the increased purchasing power of the euro is reflected to the advantage of the Irish consumer in all transactions; and if he will make a statement on the matter. [22283/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 173 and 174 together.

In the year to April 2008, Sterling has depreciated sharply against the euro, falling by around 15%. Over the same period, the Dollar has also depreciated significantly. Given that approximately two-fifths of imports to Ireland are from the UK and the US, it is expected that these exchange rate developments should exert some downward pressure on cost bases and prices here, to the benefit of our economy.

The Government is in no doubt as to the importance of this issue and I would like to reassure the Deputy that we are taking positive action to address it. Such action includes the promotion of competition and increased price transparency through the work of the Competition Authority and the National Consumer Agency. In addition, my colleague, the Tánaiste and Minister for Enterprise, Trade and Employment, has been actively engaging with those concerned to see what steps can be taken to resolve the matter. The Tánaiste met with the Chief Executive of the National Consumer Agency on May 21 to discuss a range of issues, from which a series of follow-up actions resulted. More recently, the Tánaiste met with IBEC and its affiliated body 'Retail Ireland', and is scheduled to meet with further retailers this week.

As the depreciation in Sterling and the Dollar is passed through, I would expect that there should be a moderation in Ireland's inflation rate later this year. I am disappointed that, so far, this does not seem to have happened.