asked the Taoiseach if he will furnish an estimate of the proportion of the average household budget which is devoted to housing costs, both rental and purchase; the proportion of the consumer price index which is comprised of such housing costs; and if he will revise the index to take account of the rapid increase in house and land prices in recent years.
Ceisteanna—Questions. Oral Answers. - Consumer Price Index.
2.
The last full-scale national household budget survey was conducted in 1973. On the basis of the results of that survey it is estimated that, averaged over households of all types, total housing costs—including the full amount of mortgage repayments and life insurance premiums linked to house purchase—amounted to 7 per cent of total household expenditure.
The weighting pattern of the current consumer price index is based on the same survey. Housing costs, which exclude the capital element of mortgage repayments and life insurance premiums linked to house purchase— treated as investment—account for 6 per cent of the total household expenditure covered by the index. Due account is taken in the compilation of the index of changes in the prices of all the elements covered.
Would the Minister say if the cost of housing and lands is reflected accurately in the household budget and, in view of the considerable increase in the speed of escalation from the point of view of prices for both housing and land, how will he control the cost of living if there is no serious price review or price control in respect of housing and land?
I do not accept that the details given in the reply do not arise from a serious examination of them.
Would the Minister not agree there is no serious control on the price of either land or houses? They are two things which are not subject to any serious review or control.
The question has nothing to do with control. The question has to do with the realistic reflection of prices in the household budget survey and in the consumer price index.
Question No. 3.
If any component in the household budget is allowed to increase at a greater rate than other components then, clearly, it will be reflected in the cost of living. Would the Minister not agree with that?
The question asks if I will furnish an estimate of the proportion and if all factors are taken into consideration, and the reply deals with that question.
The Minister says there is no serious control of prices of land and houses unlike the other components.