Dáil Éireann Debate, Wednesday - 2 June 2004
81 Mr. J. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment if her Department will prepare a report on the impact on the economy of the present increase in oil prices; and if scenarios are being prepared by her Department in respect of the way in which the economy will respond in the event that the increase in oil prices proves to be of lasting duration. [16772/04]
View answerThe price of oil has been historically high for some months now, hitting a 14 year high of $40 dollars a barrel on Friday, 7 May having been as low as $25 per barrel in early September 2003. Crude prices have however fallen back slightly from this high although following events in Saudi Arabia last weekend the price situation remains volatile.
My Department is not proposing to prepare a report on the implications of the present increase in oil prices. The situation will be taken into account in the economic review and outlook which is prepared by the Department of Finance due to be published in August. Specific scenarios are not being prepared. Considerable work in this area has already been carried out by the ESRI.
The International Energy Agency has warned that a sustained increase in oil prices would have an adverse effect on GDP and inflation in the eurozone. The continued importance of building our competitiveness remains the key issue for Ireland in the face of adverse global economic conditions.
