asked the Minister for Finance whether any Government response by way of remedial action is under consideration following the latest Central Bank Report.
21.
Ceisteanna—Questions. Oral Answers. - Central Bank Report.
20.
asked the Minister for Finance if he will comment on the report of the Central Bank of Ireland for the year ended 1970 which stated that the threat which inflation poses to the Irish economy has, unfortunately, become, more and more acute and that competitiveness is being eroded by a degree of price and cost inflation which is greater even than in the United Kingdom and much greater than in the EEC countries generally; and if he will state the measures he intends to take to correct this very serious position.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 20 and 21 together.
The Government have time and again drawn attention to the inflationary pressures referred to in the Central Bank annual report and to the fact that as a result of these pressures the competitiveness of our goods and services in external markets is being undermined. The Taoiseach in his speech opening the debate on the motion for the Adjournment for the Summer Recess dealt with the situation in detail. He called for restraint by all sectors to avoid pricing ourselves out of both home and export markets and thus threatening jobs and living standards. Inflation is, admittedly, a world-wide phenomenon but it is imperative, given our dependence on increased exports for greater growth and more employment opportunities, that our prices and costs should not be running ahead of those of our competitors.
As indicated by the Taoiseach, if moderation in seeking income increases is not exercised and there are signs of an unsustainable increase in the balance of payments deficit the Government will have no hesitation in introducing further restrictive measures.
Were the Government not aware of this inflation until this report came out? The Minister has been kind of boasting about it in this House recently.
As I have indicated in the reply I have given, the Government have time and again drawn attention to these inflationary pressures which were referred to in that report.
Am I to understand that, having considered the report of the Central Bank, the Government and the Minister for Finance are satisfied that no remedial action is now required to keep the economy in check?
I have not said that.
The Minister said as much.