asked the Minister for Industry and Commerce if he will outline the steps he has taken or is taking to tackle Irish industrial costs, under each of the relevant headings; and if he has satisfied himself with his progress to date in this respect.
Written Answers. - Industrial Costs.
29.
Significant success has already been achieved, as a result of the Government's fiscal and monetary policy, in improving the cost environment for industry which has led to lower interest and inflation rates, and a stable exchange rate. Bank interest rates have declined by 5 percentage points in the past 12 months while inflation has reduced from 3.9 per cent in 1986 to 3.2 per cent on average during 1987. The moderate pay increases agreed under the Programme for National Recovery will also contribute significantly to our industrial competitiveness. As regards the industrial costs in respect of which I have a direct function, I made an order in July 1987 bringing about a reduction of 10p per gallon in the price of petrol and 5p in autodiesel. Since then these prices have been monitored and adjustments made each month; petrol is now 23p per gallon cheaper that it was in early July 1987.
As far as insurance is concerned, significant measures to tackle the problems of cost and availability are already in train. These constitute an integral part of the Government's Programme for National Recovery. Insurance industry representatives have given assurances that reductions in insurance premia will follow the introduction of an improved framework and I will ensure that they live up to their promises.
The Programme for National Recovery imposes a requirement on State sponsored bodies, which provide utilities and services, to bring down, through greater efficiency and cost — containment measures, the high cost environment now affecting the competitiveness of our economy and the growth of employment. This is primarily a matter for the State bodies themselves and the relevant Ministers who have responsibility for those bodies.
There were no increases in ESB, postal and telecommunications charges in 1987 and I expect a similar pattern in 1988.
In general, however, developments affecting industrial costs will continue to be very closely monitored by me, with the assistance of the industrial costs monitoring group, and I can assure the Deputy that no effort will be spared in our determination to further improve the cost environment for industry.