I propose to take Questions Nos. 70, 181, 186 and 187 together.
Higher Government charges did not account for over 50% of inflation in the past year. As the Forfás report clearly states the Government-influenced category includes excisable products where price increases have occurred without any increase in excise duties. Furthermore, a significant proportion of the contribution was due to increased tobacco duties, which were more than justified. I deplore the cynical use of this analysis by vested interests to deflect attention from the need to ensure greater competition across the economy.
I fully accept that inflation is a problem and that all businesses are affected by inflationary pressures. Furthermore, the disequilibrium between our inflation level and such levels elsewhere in Europe has the potential to undermine our internationally traded sectors, in particular, and to put at risk employment and growth. I therefore welcome the sharp decrease in annual inflation to 3.7% in May.
The key to bringing inflation down is to improve competitiveness. The Government is already taking measures to improve our competitiveness in key areas. These include: strengthening competition across the economy and implementing specific measures to tackle cost pressures in key areas, such as insurance; increasing investment in research, technology and innovation, which will provide the basis for future growth in productivity; and continuing to invest in key infrastructure, such as broadband telecommunication.
On the specific issue of enterprise competitiveness, Enterprise Ireland has recently introduced a special competitiveness fund which is designed to help firms improve productivity and strengthen their overall competitiveness.
All economic stakeholders have their responsibilities in tackling inflationary pressures. The Government for its part will meet its responsibilities and its actions will be informed by advice from, for example, the National Competitiveness Council, as manifested in its recent statement on inflation, and by the anti-inflation initiative provided for under the national agreement, Sustaining Progress.