asked the Minister for Finance if he has seen the quarterly economic commentary of the Economic and Social Research Institute with its concern over the high level of unemployment, the expected price rise of over 8 per cent and the balance of payments deficit of over £80 million; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Unemployment Level.
18.
I would point out to the Deputy that the views expressed in the commentary referred to are not those of the Economic and Social Research Institute. The authors are solely responsible for the views expressed.
As I stated in reply to questions by Deputies Hogan and E. Collins on Tuesday, 2nd November, 1971, it is likely, from such information as is available to my Department, that the deficit in 1971 will be of the order of £75 million. If exceptional purchases of ships and aircraft are excluded, the balance of payments out-turn for 1971 is expected to be no greater than last year.
I would refer the Deputy generally to my statement to the Dáil on Wednesday, 27th October, 1971, in which I pointed out that inflationary pressures while still serious have become less insistent. The rate of increase in consumer prices in the second and third quarters of 1971 was significantly below that of the two preceding quarters.
There are indications, particularly by way of increased redundancies, that certain types of firms have been suffering from slack home demand, recession in certain important markets abroad and other factors. With high unemployment in the UK and a consequent drop in emigration, the unemployment rate has risen. The recent expansionary measures were designed specifically to increase employment opportunities by providing a moderate stimulus to economic activity.
Did the Minister not promise in his Budget statement to deal with inflation?
He dealt with it all right.
Yes, he pushed it up.
The Deputy can say that, despite the facts I have given him in my reply. Of course, if he does that——
It is not my record that is in question, it is the record of the Minister. The Minister promised to deal with inflation but the situation is worse now.
I have pointed out to the Deputy that the situation has improved, but the Deputy says it has got worse.
Is that why the housewives are marching around the city?
Where can we get if the Deputy will not accept the facts? I have pointed out that the rate of increase in consumer prices in the second and third quarters of 1972 was significantly below that of the two preceding quarters.
Would the Minister state what he means when he says that inflationary pressures have become less insistent?
I have given the reasons for that statement in reply to Deputy O'Donovan.
It is an extraordinary statement.
Can the Minister state how the price increases for the periods he mentioned compare with similar increases in previous years?
The comparisons in the case of each quarter are with the corresponding quarter of last year.
Will the Minister not accept that it is difficult to compare quarters when wage increases occurred in one quarter and not in another?
I think the Deputy is trying to confuse the issue. The issue was in relation to inflation and the increase in the cost of living.
I am calling Question No. 19.