Vol. 567 No. 6
151 Mr. Durkan asked the Minister for Finance if his attention has been drawn to the fact that inflation in the business sector is placing the economy at risk; his proposals to address the issue; and if he will make a statement on the matter. [14963/03]
Sectoral inflation rates will not be available until the detailed national accounts are published by the CSO, which I understand will happen later in the year. However, I am aware that the rate of inflation is a cause of concern to the business community and I share that concern. Bringing the rate of inflation down towards that of our EU partners is a priority for the Government. This must be done in order to safeguard our competitiveness and avoid losing jobs. That is why the Government made the commitment in Sustaining Progress to work together with the social partners to exert downward pressure on inflation. The anti-inflation initiative is part of this process and the Government agreed that proposals for action would be co-ordinated by a specially convened group.
I look forward to the anti-inflation initiative group's report which is due to be produced by the end of the summer. I am confident that, working together in partnership, we will address the issue of domestic price pressures in the Irish economy to bring inflation down. In this context, the implementation of the moderate pay arrangements set out under Sustaining Progress is also vital. Keeping public expenditure on target will be important if our inflation rate is to moderate and I have put in place management and control mechanisms to ensure this.
152 Mr. Durkan asked the Minister for Finance the steps open to him in the event of a continuation of Ireland's inflationary trends causing lack of competitiveness; and if he will make a statement on the matter. [14964/03]
Bringing the rate of inflation down towards that of our EU partners is a priority for the Government. This must be done in order to safeguard our competitiveness and avoid losing jobs. That is why the Government made the commitments in Sustaining Progress to work together with the social partners to exert downward pressure on inflation. The anti-inflation initiative is part of this process and the Government agreed that proposals for action would be co-ordinated by a specially convened group.
I look forward to the anti-inflation initiative group's report which is due to be produced by the end of the summer. I am confident that, working together in partnership, we will address the issue of domestic price pressures in the Irish economy to bring inflation down. In this context, the implementation of the moderate pay arrangements set out under Sustaining Progress is also vital. Keeping public expenditure on target will be important if our inflation rate is to moderate and I have put in place management and control mechanisms to ensure this.
However, it is important to stress that inflation is falling. According to the most recent CSO data, inflation fell to 4.3% in April, which represents the greatest fall in the annual rate since early 2001. Services sector inflation is also moderating. The challenge now is to ensure that we bring inflation down as quickly as we can.
