asked the Minister for Finance if he is aware that the continuing high rate of inflation could cause this country's exports to be noncompetitive on foreign markets; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Inflation Rate.
73.
I have on a number of occasions made clear the Government's constant concern with the effects of inflation on the economy, particularly in the field of foreign trade. I have also indicated to the House the specific policies being pursued to contain the rate of inflation. The operation of these policies will continue and, if necessary, will be supplemented by action in other areas.
Rising prices in the countries with which we trade have mitigated the adverse effect of inflation here on our foreign trade. Our position has also been cushioned by increased foreign demand for our agricultural products.
Thus in the first nine months of 1972 the value of our total exports rose by £66 million, or 17 per cent over the same period of 1971.
These figures, satisfactory though they are, give no grounds for complacency. An even higher level of exports and foreign trade generally is necessary if we are to achieve the growth in output and employment which is the fundamental aim of our economic policy.
Is the Minister aware that the rate of inflation in Ireland is higher than in England or the European countries and that only the Japanese rate is higher than ours, amongst industralised countries? Is he further aware that this inflationary situation in Ireland has been the major contributing factor in 11,600 persons losing their jobs last year? Is he further aware that the major component of this inflationary situation is Government expenditure? Is he not aware that it is assumed that in industrialised or developing economies such as Ireland the Government can control the level of inflation? It is obvious to me that the Government have completely failed to do so.
The Deputy is making a statement.
A Leas-Cheann Comhairle, a statement is very badly needed.
We have got none from the Government.
It is a statement that is as inaccurate as those usually made on this subject by Deputy Collins.
I challenge the Minister to debate the matter publicly. I will not have my statement misrepresented by the Minister.
First of all, how does the Deputy arrive at the conclusion that this Government is the only one who are not doing their duty in this regard? How does he say it is due solely to Government expenditure when he has himself quoted, in what he said, that there is inflation in various other countries. He said that ours was higher than Britain's and various other EEC countries.
We have the highest return.
That is right. Why is the Deputy attributing this to this Government? Why is he ignoring the factors which operate in other countries? That is No. 1.
It is worse here.
The economy is out of control.
Let me tell the Deputy a few home truths he does not know about.
The Minister is supposed to be answering questions.
I am answering them. I can manage to answer them without any assistance from Deputy Desmond.
The Minister cannot.
I can very easily. Deputy Desmond need not worry. He has other things to worry about. The fact is that in the present year there has been a marked deceleration in the rate of increase of non-food items in this country as well as a substantial increase in growth.
It is not true.
I am telling the Deputy. His assertion that it is not true can be taken for what it is worth. That is the fact and this is a direct consequence of the action we have taken. The major reasons for the increases have been because of two factors: (1) a scarcity of potatoes and (2) the increase in the price of beef. If the Deputy would care to analyse the figures in the consumer price index he will find that is true. He would, of course, prefer to make misleading statements and then get worked up when he is told they are misleading.
Will the Minister tell us what has happened the Third Programme for Economic Expansion and the Government's White Paper on Full Employment?
We cannot have any further debate on this. The Chair is calling Question No. 74.
The Deputy is changing his feet very fast.