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Dáil Éireann díospóireacht -
Wednesday, 27 Jan 1971

Vol. 251 No. 1

Ceisteanna—Questions. Oral Answers. - Cost of Living.

18.

asked the Taoiseach the cost of living index figure at (a) the latest available date, (b) a similar date 12 months ago, (c) a similar date five years ago; if he will indicate (1) the points increase in the past 12 months, (2) the percentage increase in the past 12 months and (3) the reasons for the abnormal increase; and what action the Government intend to take to stabilise the cost of living.

The consumer price index with base November, 1968 as 100 rose by 10.8 points from 107.6 at mid-November, 1969 to 118.4 at mid-November, 1970 or by 10.0 per cent. With your permission, a Cheann Comhairle, I propose to circulate in the Official Report a statement giving the points increase attributable to each commodity group and to the principal constituent items. Prior to November, 1968 the consumer price index was calculated to base August, 1953 as 100. To this base the November, 1965 figure was 144.8 and the corresponding figure for mid-November, 1970 was 192.6.

A number of factors have contributed to the increase in prices in the past 12 months. Due to the general tendency for prices to rise sharply in the main countries with which we trade, import prices rose significantly. The pay increases beyond the growth of national productivity which occurred during 1970 were also a significant factor both directly and because, in the case of Government services, pay increases led to higher taxation. There were also increases in food prices due to market and other circumstances.

As price increases are caused by a number of factors, many of which are not within our power to control, absolute price stability cannot be ensured by the Government. The Government's objective is to keep price increases to the minimum. Economies are being made in Government expenditure, action has been and is being taken on the prices and incomes front and credit policy will be directed towards ensuring that excessive credit will not be created during 1971-72.

Following is the statement:—

POINTS increase in the consumer price index (base November, 1968=100) between mid-November, 1969, and mid-November 1970, attributable to each commodity group and to the principal ocnstituent items.

Commodity Group and item

Points increase

Food

+2.82

Beef

+0.31

Bread

+0.25

Meals away from home

+0.22

Bacon

+0.22

Mutton

+0.21

Eggs (corrected for seasonality)

+0.14

Alcoholic drink

+0.64

Cigarettes and tobacco

+0.28

Clothing

+1.01

Fuel and light

+0.57

Coal

+0.27

Electricity

+0.16

Housing

+0.68

Rent and rates of rented dwellings

+0.34

Rates of owner occupied dwellings

+0.18

Repairs and decorations of all dwellings

+0.16

Durable household goods

+0.39

Other Goods

+1.03

Papers and magazines

+0.76

Transport

+1.79

Public transport

+0.80

Motor cars

+0.40

Motor car and motor cycle insurance

+0.15

Motor car and motor cycle tax tax

+0.15

Services and related expenditure

+1.56

Other expenditure

+0.21

Admission to cinema

+0.18

Postage

+0.15

Domestic service

+0.14

Education

+0.13

Admission to dance

+0.11

Is the Taoiseach aware that he and his Government have fallen down completely with regard to the cost of living, which has gone sky high? Is the Taoiseach aware of the hardship inflicted on widows, the old, the sick, the unemployed and those on social welfare benefits due to inflation and the fact that the £ is now becoming jet propelled? Would the Taoiseach now not be prepared to give an increase of £1 per week to those people who are being affected by the Government's inflationary policy?

That is a separate question.

We can look to our record in that respect with satisfaction and pride.

You give ten shillings and take £1 away.

Ever since we came back into Government in 1957, the increase in social welfare payments has been greater than the increase in the cost of living and we hope to maintain our record.

There has never been such poverty in the country as exists today due to your misgovernment.

Order. I am calling Question No. 19.

19.

asked the Taoiseach the percentage increase in the consumer price index for each of the three years ended November, 1970.

The yearly average of the consumer price index, for the year ended November, 1970, was 8.2 per cent above that for the previous year. The corresponding increases for 1969 and 1968 were 7.4 per cent and 4.7 per cent respectively.

20.

asked the Taoiseach (1) the cost of living index figure at 31st December, 1957, and 31st December, 1970; and (2) the cost of each article taken into account in calculating the cost of living index figure at 31st December, 1957, and 31st December, 1970.

The consumer price index numbers are calculated in respect of mid-February, mid-May, mid-August and mid-November each year. The index with base August, 1953, as 100 was 113.8 at mid-November, 1957, and 192.6 at mid-November, 1970. With your permission, Sir, I propose to circulate in the Official Report a statement giving the national average retail prices for mid-November, 1970, for the principal food items included in the consumer price index, together with percentage changes since November, 1957, for certain individual food items and for all the major commodity groups.

In the case of items, other than the principal food items, no attempt is made to obtain quotations for an identical quality of the different articles in all areas and, therefore, any average prices computed would not be meaningful. The correctness of the relative price changes is ensured by the fact that at each source the identical article is priced at successive inquiries.

In introducing the present consumer price index in November, 1968, changes were made in the list of items priced and in the set of retail outlets from which price quotations are collected. As a consequence it is not possible to give comparable national average retail prices for food items for November, 1957, but percentage changes for a number of food items can be derived by linking the two series. In the case of non-food items where the revision was more extensive, percentage changes have been compiled only for broad groups.

Following is the statement:

(a) NATIONAL average Retail Prices of Principal Articles of Food at Mid-November, 1970.

Commodity

Unit

Mid-November, 1970*

s.

d.

Beef:

Round Steak

lb.

7

4.6

Sirloin

,,

8

9.4

,, roast

,,

7

4.1

Rib steak

,,

5

5.7

Brisket corned beef

,,

3

0.7

Mutton:

Leg (whole)

,,

5

10.3

Loin chops

,,

7

5.4

Cutlets (rib chops)

,,

6

3.9

Gigot chops

,,

6

0.8

Neck

lb.

2

4.1

Liver

,,

5

8.2

Pork:

Leg (whole)

,,

6

1.2

Loin chops

,,

7

2.7

Shoulder (whole)

,,

5

0.8

Steak

,,

9

0.0

Bacon:

Best back rashers

,,

7

5.6

Streaky ,,

,,

5

7.0

Ham, uncooked

,,

6

2.0

Shoulder (whole)

,,

3

6.0

Ham, cooked

,,

11

7.7

Sausages, pork

,,

3

9.8

Black pudding

,,

2

4.8

Fish:

Whiting, fillets

,,

3

8.9

Cod, cutlets

,,

5

0.6

Plaice, fillets

,,

7

1.5

Kippers

,,

3

3.3

Fresh vegetables:

Potatoes

3½ lb.

1

3.1

Tomatoes

lb.

3

1.2

Onions

,,

1

3.0

Carrots

,,

1

0.0

Cabbage (medium size)

each

0

10.6

Bread:

White, sliced

2 lb.

2

3.0

,, unsliced

,,

2

2.5

Flour:

White, plain

3½lb.

3

1.4

,, self-raising

,,

3

3.2

Fresh Milk

pint

0

9.2

Cheese:

Processed

½lb.

1

11.4

Natural

lb.

4

0.5

Eggs standard

doz.

5

0.7

Butter (creamery)

lb.

4

11.7

Margarine

½lb.

1

2.7

Tea:

Best quality

¼lb.

2

0.6

Medium ,,

,,

1

8.2

Sugar

2 lb.

1

8.4

Oatmeal, packet

3½lb.

3

6.7

Cornflour

lb.

1

8.9

*These average retail prices include turnover tax.

(b) PERCENTAGE change between mid-Nov., 1957 and mid-Nov., 1970 in the price of certain individual food items and in the major groups of non-food items entering into the Consumer Price Index.

Commodity

Percenta increase (+) or decrease (-)

Food:

Beef

+ 99.97

Mutton

+ 77.07

Pork

+ 59.22

Rashers

+ 42.64

Ham, uncooked

+ 52.32

Bacon

+ 39.98

Poultry*

+ 0.38

Ham, cooked

+ 69.35

Sausages, pork

+ 44.49

Fresh fish

+ 86.21

Dried and cured fish*

+ 33.66

Tinned fish*

+ 63.43

Potatoes

+ 72.23

Tomatoes

+ 87.77

Onions

+ 103.86

Carrots

+ 68.05

Cabbage

+ 92.39

Dried peas*

+ 37.42

Tinned vegetables*

+ 31.32

Bread

+ 92.92

Flour

+ 63.21

Biscuits*

+ 31.36

Cake*

+ 27.50

Fresh milk

+ 50.48

Condensed milk*

+ 38.26

Cheese

+ 36.63

Eggs

– 15.63

Butter, creamery

+ 16.63

Margarine

+ 48.94

Cooking fat*

+ 7.30

Apples, cooking*

+ 106.11

Oranges*

+ 36.14

Tinned fruit*

– 1.26

Dried fruit*

+ 34.18

Tea

+ 10.49

Coffee*

+ 10.81

Cocoa*

+ 45.94

Sugar, white granulated

+ 41.87

Breakfast cereals*

+ 21.05

Oatmeal

+ 18.86

Cornflour

+ 14.69

Rice*

+ 52.22

Semolina*

+ 35.15

Jelly*

+ 28.37

Custard powder*

+ 22.08

Jam*

+ 52.61

Marmalade*

+ 50.14

Sweets*

+ 39.19

Chocolate bars*

+ 34.88

Soft drinks*

+ 56.00

Sauce*

+ 21.58

Salt*

+ 24.52

Mustard*

+ 41.49

Alcoholic drink and tobacco

+ 101.5

Clothing and footwear

+ 44.3

Fuel and light

+ 39.9

Housing

+ 104.2

Durable household goods

+ 50.5

Other goods and service

+ 89.9

*As quotations are not obtained for an identical quality for each price reported national average prices for these items are not meaningful and have not been included n (a) above.

21.

asked the Taoiseach the percentage increase in the cost of (a) bread, (b) meat, (c) domestic transport, (d) domestic fuel, (e) rents and (f) rates since 1st January, 1970.

The consumer price index is calculated in respect of mid-February, mid-May, mid-August and mid-November each year. The percentage increases in the items specified between mid-November, 1969 and mid-November, 1970 were as follows:—

%

Increase

(a) Bread

8.3

(b) Meat

11.4

(c) Transport

16.1

(d) Fuel and light

9.9

(e) Rents (inclusive of rates)

9.0

(f) Rates

8.6

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