Seán Power (Kildare South, Fianna Fail)
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Question 154: To ask the Minister for Finance the reason the cost of many services provided by the public service increased last year, while the cost of services provided by the private sector became cheaper; and if he will make a statement on the matter. [2309/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Prices set in the public sector make up only about four per cent of the basket of goods and services used in compiling the Consumer Price Index (or CPI). Accordingly, changes in these prices have little impact on the CPI.

Public sector prices make up a much smaller component of the CPI than in the past. This is because following privatisation of services such as telecoms and energy, these prices are now set by independent regulators. Public sector prices are generally set by Ministers or at local authority level. In doing so, due regard is given to the cost of providing the service and the length of time since the last change. Consideration is also given to ensuring that a high level of quality is provided to the public.