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Dáil Éireann díospóireacht -
Wednesday, 12 Mar 1958

Vol. 166 No. 1

Ceisteanna—Questions. Oral Answers. - Cost of Living: Effect of Budgets.

asked the Taoiseach if he will state the percentage increase in the cost of living caused by the Budget of (a) 1952 and (b) 1957.

(a) The increases in the retail prices of bread, household flour, butter, tea and sugar between mid-May and mid-August, 1952 were responsible for a gross rise of 7.1 points in the Interim Cost-of-Living Index (Essential Items) to base August 1947=100 and this was equivalent to an increase of 6.2 per cent. on the mid-May 1952 figure. (b) The increases in the retail prices of bread, household flour, butter, tobacco, cigarettes, beer and petrol between mid-February and mid-August 1957 were responsible for a gross rise of 5.0 points in the Consumer Price Index to base August 1947=100 and this was equivalent to an increase of 3.7 per cent. on the mid-February 1957 figure.

These increases cannot be taken as entirely attributable to budgetary changes as it is not practicable to segregate precisely the effect of Budget changes from other variations between the dates of the inquiries. The Interim Cost-of-Living Index was not affected by changes in indirect taxes in the 1952 Budget, since such items as drink, tobacco, etc., which are included in the Consumer Price Index, were not covered by the Interim Index.

Has the Taoiseach any comment to make on the fact that he told the House here a few weeks ago that the cost of living had actually fallen by one point?

The index had fallen by one point since August.

The cost of living has gone up——

The index figure had fallen. What I said on that occasion was that there was no indication at the present time that it was rising and that in fact it had fallen by one point.

Nobody in the country believes that.

Everybody in the country does not know what the cost of living index means.

They know when they have to pay for the rising cost of living.

They know what it is when they have to put their hands in their pockets.

When the Deputy was Minister he did not talk like that.

When the Deputy was Minister he kept prices under control.

When the Deputy was Minister he told the truth frankly.

(Interruptions.)

It was difficult to follow the lengthy reply. I want to inquire from the Taoiseach is it the position that the increase in the cost of living as a result of the 1952 Budget was 6.2 per cent. and as a result of the 1957 Budget 3.7 per cent.?

That is correct.

Is it not a fact that nobody outside Grangegorman would say to-day that the cost of living has not substantially increased?

I did not say that the cost of living had not increased. The question that I was asked——

(Interruptions.)

The Ministers are becoming very impatient.

Is the Taoiseach not entitled to speak?

The tripe the Minister talked in Portlaoighise must have gone to his head.

Ministers need a lesson in good manners.

Everybody knows the cost of living has gone up and that the Taoiseach and the Government are responsible for it.

(Interruptions.)
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