asked the Taoiseach the amount required in 1981, 1979, 1978, 1977, 1973, 1969, 1965, 1960, 1957, 1954, 1951 and 1948 to purchase what £1 would have purchased in 1922.
Ceisteanna—Questions. Oral Answers. - Value of £.
2.
With the permission of the Ceann Comhairle, I propose to circulate in the Official Report a statement giving the information requested by the Deputy.
Following is the statement:
The amounts, estimated on the basis of the consumer price index which would have been required in each of the years specified and in mid-February, 1981 (the latest available figure) to purchase the same quantities of goods and services at retail prices as £1 would have purchased in 1922 are given in the following table:
|
Year |
£ |
Year |
£ |
|
1922 |
1.00 |
1969 |
3.63 |
|
1948 |
1.68 |
1973 |
5.19 |
|
1951 |
1.85 |
1977 |
9.83 |
|
1954 |
2.12 |
1978 |
10.58 |
|
1957 |
2.36 |
1979 |
11.98 |
|
1960 |
2.47 |
1981 (Feb.) |
15.87 |
|
1965 |
3.04 |
3.
asked the Taoiseach (a) the amount required at the latest available date in 1981 to purchase what £1 would have purchased in June 1977; and (b) the percentage decrease in the value of the Irish pound between 1977 and 1981.
(a) On the basis of the consumer price index, which is calculated in respect of mid-February, mid-May, mid-August and mid-November each year, it is estimated that £1.62 would be required in mid-February 1981 — the latest available date — to purchase the same quantities of goods and services as £1 would have purchased in mid-May 1977.
(b) Estimates of the percentage change in the domestic purchasing value of the Irish pound are based on the percentage change in the consumer price index. It is estimated that the domestic purchasing value of the Irish pound fell by 38.1 per cent between mid-May 1977 and mid-February 1981, the latest date for which the index is available.
Would the Minister of State now agree that our present high inflation rate of 21 per cent — the highest in Europe — budget deficits, the excessive borrowing we have had and the doubling of the national debt in the last four years have all accelerated the decrease in the value of the Irish £? Would the Minister of State not agree also that this is completely contrary to what was promised in the famous manifesto of 1977, when his party promised the exact opposite to the Irish people?
I do admit that the inflation rate is high. But I might point out that in 1977 the increase was 90 per cent. Therefore the lesson there is that, if this Government were not in power, the people would be an awful lot worse off than they are.
Would the Minister agree that, whereas during the period of the National Coalition our domestic inflation rate ran at 3 per cent less than the rate of imported inflation, in terms of imported price increases, under this Government it is running at 3 per cent more than the rate of imported price increase?
I do not accept the Deputy's statement. I would point out from the evidence I have here today that the increase under the last Government was 90 per cent——
The Minister I think is aware that what I have stated is correct and that what is under the control of our Government are the variations between the imported rate of inflation and our own. Is the Minister aware of what the figures are, that during that four year period we kept the rate of inflation down to 3 per cent below the rate of imported price increase, whereas this Government has pushed it up 3 per cent above that rate? Is that not the true measure of the performance of a Government?
There are many facets to this, but I do say that the Deputy's party stand indicated by their failure when they were in power. I think we will let it go at that.
Obviously I am not going to get much further with my question, but I think my point has been made. Would the Minister indicate to us, in respect of the second half of the reply, what is the decrease in the purchasing power of the Irish pound over and above what he calls the domestic decrease, that is to say, what is the decline in the period in the trade-weighted value of the Irish pound externally over and above the internal domestic decline in its value in terms of our currency?
That sounds like an economic lecture.
It is an economic question.
However, I will repeat the second part of the question which reads:
Estimates of the percentage change in the domestic purchasing value of the Irish pound are based on the percentage change in the consumer price index. It is estimated that the domestic purchasing value of the Irish pound fell by 38.1 per cent between mid-May 1977 and mid-February 1981, the latest date for which the index is available.
Might I ask the Minister why the estimates are on the basis of the domestic purchasing power when in fact account should be taken, and is taken, by any economist assessing this question of purchasing power, of the fall in the value of the Irish pound vis-á-vis other currencies?
If the Deputy is asking why it happened I would say because of a world recession.
The tide is going out for the Minister's party anyway.