asked the Minister for Finance if he has any particular plans in view to hold inflation in this country.
Ceisteanna—Questions. Oral Answers. - Inflation Control.
22.
Inflation has in recent times become a world-wide phenomenon and Ireland, as a small country heavily dependent on external trade, cannot hope to escape its repercussions. The Government have already taken steps this year on the incomes, credit, hire purchase and fiscal fronts to damp down inflationary pressures arising within the economy. It is too early yet to assess the effects of these measures but the Deputy can be assured that the Government are keeping current trends under the closest scrutiny and will take any further appropriate action required in the light of the overall economic situation.
Would the Minister not consider that the recent imposition of turnover tax in the Budget is likely to create a rather more serious inflationary situation than exists at the moment? Does he consider that any action he has taken or is likely to take is likely to control this inflation?
The answer to the first part of the question is no and to the second part is yes.
Would the Minister not agree as a result of the extra imposition of turnover tax that there is likely to be a further demand for increased pay packets or wages? As such would that in itself not create an inflationary situation or is the Minister, like the proverbial ostrich, putting his head in the sand and not noticing those things?
The answer to both parts of the question is no.