Dáil Éireann Debate, Thursday - 6 May 2004
118 Mr. Durkan asked the Minister for Finance if he and his Department propose to take any action to address price increases which are rendering the economy less competitive; and if he will make a statement on the matter. [13114/04]
View answerThe latest CPI release shows inflation in March was 1.3%, down from 4.9% in the same month last year. This is its lowest level in over four years and is a welcome development. Maintaining a moderate rate of inflation remains a key priority of economic policy because of its importance in regaining competitiveness. Keeping public expenditure within target is essential in this regard and our recent record in this area speaks for itself. Expenditure came in on target in 2003 and we continue to be vigilant in our monitoring and management of the public finances.
I made only limited changes to indirect taxes in the budget in 2004 because the goal of keeping inflation low took precedence on that occasion. These increases in excise duties are estimated to add less than 0.4% to the rate of inflation this year. The excise changes will raise €243 million in revenue. This revenue is required to continue to fund public services.
My Department is participating in the anti-inflation initiative which forms part of Sustaining Progress. Since the publication of the anti-inflation action plan in November 2003, a successful national information campaign, Price Awareness Pays, has been carried out. The Office of the Director of Consumer Affairs oversaw the campaign, which involved TV, radio and newspaper advertisements to encourage consumers to be more price conscious. This initiative is ongoing.
A moderate pay agreement is essential if we are to safeguard our competitiveness and maintain control of the rate of inflation.
