asked the Minister for Finance whether as reported he stated that he had come away from South America with a horror of inflation; and if he will make a general statement on his visit, with particular reference to the question of inflation.
Ceisteanna—Questions. Oral Answers. - Minister's Visit to South America.
40.
Between 1960 and 1966, consumer prices in Brazil, Chile and Argentina rose by 1,520 per cent, 310 per cent and 275 per cent respectively. This represented annual average increases of 60 per cent, 27 per cent and 25 per cent. Inflation on this scale is obviously destructive of the value of a national currency and is, as I stated on my return from South America, a real barrier to progress.
Is the Minister aware that we have been living in the horrors of inflation?
That is a separate question. The question related to South America.
We have had it here but we heard nothing about it. We can blame the Government.
The corresponding figure here for the same period, 1960-66, is four per cent per annum.
Then, why is the Minister for Transport and Power making statements warning the people?
Last year the increase was only 2.7 per cent and between mid-May and mid-August this year, there was no increase in the Consumer Price Index.
The question does not relate exclusively to South America but to a statement made by the Irish Minister for Finance in Dublin on his return from South America when he thought it expedient to issue this note of warning about inflation. In those circumstances, would it not be legitimate to ask him if he does not think it worthy to give even one-tenth of his ear to his colleagues, Deputy Childers and Deputy MacEntee, who have been warning him of the grave dangers there were on the road they were travelling?
The statement I made when I came back from South America was with particular reference to the situation I had observed in most South American countries where they suffer from inflation to an extent and degree unknown in this part of the world.
Thanks be to God.
The Minister then, is quite satisfied that his trip was well worth the time and the expense, and may we offer him our congratulations—or comhgáirdeachas, as we say in Irish—and may we suggest that he might send the Minister for Agriculture and Fisheries there to improve his knowledge of agriculture?
I am not unmindful of the fact that Deputy O.J. Flanagan first came into this House under the banner of monetary reform.
Which has nothing to do with inflation. The Minister himself had ideas in that regard when he was in the university.
That is right.
I think we were in touch with each other.
For the record, I might remind the House that at that time, in my capacity as Auditor of the Commerce Society, I invited Deputy Flanagan to come to talk to the students on monetary reform, which invitation he politely declined.
I have the happiest recollection of the correspondence.