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Price Inflation.

Dáil Éireann Debate, Wednesday - 3 February 2010

Wednesday, 3 February 2010

Questions (54)

Róisín Shortall

Question:

115 Deputy Róisín Shortall asked the Minister for Finance his views on the fact that price inflation continued during 2009 in the sub-indices of education and miscellaneous goods and services at a time when the consumer price index decreased by 5% over the course of the year; his views on whether bringing down costs in these sectors are important for restoring competitiveness here; if he has proposals to encourage the moderation of price levels in these sectors, particularly in the provision of professional services; and if he will make a statement on the matter. [5331/10]

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Written answers

The Consumer Price Index (CPI) fell by 4.5 per cent in 2009 while, as the Deputy notes, increases were recorded in the education and miscellaneous goods and services categories.

The Student Services Charge is levied by third level institutions to defray the costs of examinations, registration and students services. For the 2009/10 academic year, the Government indicated that it was willing to accept increases in the Student Services Charge to bring it to up to a limit of €1,500 (from €900) in individual higher education institutions and brought it more into line with the costs of the range of students services provided.

The miscellaneous goods and services contains a wide range of items including some professional services where the Competition Authority has made recommendations. As set out in the Framework for Sustainable Economic Renewal document, Building Ireland's Smart Economy, there is a commitment to publish a whole of Government response to recommendations contained in Competition Authority reports. This was reaffirmed in the October 2009 Review of the Programme for Government, Renewed Programme for Government.

The Tánaiste and Minister for Enterprise, Trade and Employment has received the views of relevant Government Ministers as to how a list of competitiveness recommendations, insofar as they relate to their Departments, can be progressed and she intends to bring an update to Government shortly on the progress achieved to date. In line with the original commitment in the Smart Economy document, a whole of Government response to any recommendations contained in future reports drawn up by the Competition Authority will be published within nine months.

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