Dáil Éireann Debate, Tuesday - 28 May 2013
323. Deputy Caoimhghín Ó Caoláin asked the Minister for Jobs, Enterprise and Innovation the progress made regarding action 126 in the Action Plan for Jobs to compare consumer price levels and consumer price inflation here; if the terms of reference for the proposed report have been agreed; and if he will make a statement on the matter. [25278/13]
View answerAction 126 of the Action Plan for Jobs 2013 requires that Forfás “Compare consumer price levels and consumer price inflation in Ireland with prices in our key competitors; identify the primary drivers of price and inflation differentials and assess the impacts of cost of living in Ireland on labour costs and other business costs.” The Terms of Reference for this work were to be developed in Quarter 2.
Increases in the Consumer Price level represent a significant indirect cost for business as it puts upward pressure on wage expectations, thus adding to the cost base for enterprise and ultimately impacting on our international competitiveness. The recently published Forfas report “Costs of Doing Business in Ireland 2012” found that Irish consumer prices as measured by the Consumer Price Index and the Harmonised Index for Consumer prices were 12% above the euro area average in 2011. The forthcoming Forfas study will go further, and identify the primary drivers of price and inflation differentials. I can confirm that the Terms of Reference for the Forfas study have been agreed. The report is due for completion by the end of the year.
