asked the Minister for Finance if he is aware of the recommendation contained in the OECD report to the effect that there should be a costs and prices freeze to enable the economy to move again; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Costs and Prices Freeze.
13.
The latest OECD Annual Economic Survey to which the Deputy refers does not recommend a costs and prices freeze. The Government's views on costs and prices are set out fully in the financial statement delivered by the Minister for Finance to the House on 19th April, 1972. In two key respects these views are in agreement with those of the OECD Annual Economic Survey. First, the effectiveness of an increase in domestic demand, as provided for in the budget, will depend on their being a check to price and cost inflation. Second, it is important that a new national pay agreement should be less inflationary than its predecessor.
Would the Minister for Finance be in favour of a prices freeze in line with the OECD recommendation?
If the Deputy had been listening——
I was trying to get an answer to my last supplementary on the previous question.
And I was obeying the Chair by reading my reply. I said that the latest OECD Annual Economic Survey to which the Deputy refers does not recommend a costs and prices freeze.
It recommends a prices freeze.
It does not. The Deputy was not listening to me.
Perhaps the Parliamentary Secretary would read it again for the benefit of all of us.
I will read from the OECD Report:
If the stronger growth of domestic demand is to exert the intended effect on domestic activity and employment rather than on imports, it must be accompanied by vigorous action to moderate the rise in wages and prices, thus arresting or reversing the erosion on competitiveness of the Irish industry.
In the financial statement the Minister said:
It is essential, therefore, that there should be a widespread acceptance of the need to redouble our efforts to check price and cost inflation. Unless we do so, much of the effectiveness of this budget will be dissipated.
The OECD report stated:
It is important that any new agreement should be less inflationary than the previous one.
In the financial statement the Minister said:
This must take the form of a new agreement markedly less inflationary than its predecessor.
Is that all the OECD report?
It is the appropriate reference to the question.
Is it all the appropriate references?