asked the Taoiseach if the adverse trade balance for the first four months of 1971 is greater than it was for the first four months of 1970; if so, the reasons; and what action the Government intends to take to correct the imbalance.
Ceisteanna—Questions. Oral Answers. - Trade Balance.
2.
As yet, trade statistics are available only for the first three months of 1971. These show a rise of about £29.7 million in the import excess as compared with the corresponding period of 1970. The reason for the increase was a substantial rise in imports, the principal element in which was two Boeing 747 aircraft, which added some £20 million to the import bill.
With regard to the final part of the question, I would refer the Deputy to the speech of the Minister for Finance when introducing the recent Budget in which he outlined the economic policies to be implemented by the Government this year. The purpose of these policies is, inter alia, to bring about an improvement in the balance of payments.
Will the Taoiseach not admit that a further increase of £29.7 million should be causing grave concern to the Government? Will he not further admit that the Government's policy of inflation down through the years has been pricing our exports out of both the British markets and, if we enter the EEC, the European markets? Is he not aware that due to inflationary trends we are now pricing ourselves out of the Irish market, that British products are more and more on sale in Irish shops and that consequently Irish employees are losing their jobs in our factories?
First of all, the Government do not have a policy of inflation. On the contrary, our policy is to avoid inflation and to reverse the inflationary trend. I agree that inflation tends to put up the price of goods, especially home produced goods, and therefore tends to make them less competitive. Fortunately, the trend of inflation is being felt in other countries, particularly those who trade with us, so that our competitive position has not been so adverse. As was indicated in the Budget and as is inherent in Government policy, the inflationary trend is now bending in the right direction and I hope that in future months our goods will be more competitive and that this in turn will have an advantageous effect on employment.
I agree with the first part of the Taoiseach's reply that the Government do not have a policy of inflation. They have not got a policy for anything.
Will the Deputy ask a question.
Will the Government tell us what they have done in the past few years to curb inflation? Is not the position that all we have is political expediency by a Government who are afraid to grasp the nettle——
The Deputy is getting away from the question.
Inflation has increased at a higher rate here than in any country in the world.
We were the first country in the world, in the period from 1966, to control inflation. It will be done equally effectively this time, the Deputy need have no fear.
For political expediency, the Government have abandoned whatever policy they had in the past. Even when they dip his nose in the mud he is afraid to take action against the dissidents.
(Interruptions.)