asked the Minister for Finance whether he will make a statement on the reports that Ireland leads the price-rise race.
Written Answers. - Price Rises.
274.
I presume the Deputy's question refers to newspaper comment on certain data contained in the July, 1973, publication of the OECD Economic Outlook. Some newspapers erroneously reported the OECD as stating that prices here rose by 18 per cent between mid-November and mid-February, whereas the figure quoted in the review was simply the actual increase that took place, 4.0 per cent, which if converted to an annual rate would mean an 18 per cent annual rise. The OECD figure being based on data for the three months to mid-February does not reflect current trends. More up-to-date data, converted along OECD lines, would, in fact, show a halving of the rate of inflation in the three months ending mid-May.
Even allowing for these qualifications however, it remains true that the OECD figures do show a higher rate of inflation here for the period concerned than in other member countries of the organisation. To the extent that the comparison indicates a loss of international competitiveness of goods and services produced here, it emphasises the need for firm action to keep domestic costs under control. On the prices front, the House is aware of the far-reaching measures put into effect by the Government. In the area of production costs, a crucial factor is the terms of settlement of pay-increases reached when the present national agreement expires. Responsible decisions by the social partners in this sphere can make a large contribution to moderating the pace of inflation here, enhancing competitiveness, and promoting growth and employment.