Martin Ferris (Kerry North, Sinn Fein)
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Question 21: To ask the Minister for Finance his view on the proposal that, as part of an anti-inflationary package, user fees and charges for public services should be frozen or reduced in 2009 in order to lessen the cost of living pressures on those with low and average incomes. [31314/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I assume the Deputy is referring to the perception that government charges are significantly increasing the rate of inflation. In this regard, I would draw the Deputy's attention to the fact that the pickup in inflation in recent years has been driven primarily by external developments, namely the global rise in oil and food prices and increases in interest rates.

Government administered charges, excluding independent regulators, account for around one twentieth of the total weighting of the basket of goods and services which make up the Consumer Price Index. As such, the contribution of increases in these charges to total inflation is small.

Notwithstanding this fact, I would like to reassure the Deputy that the Government is committed to achieving a moderate rate of inflation. In light of this, when developing public policy — be it at Budget time or during the year — due consideration is given to any potential inflationary impacts.

I would also point out that inflation is expected to ease next year as some of the factors that impacted on inflation earlier this year wane. Inflation forecasts out to 2011 will be provided on Budget Day.