Vol. 514 No. 3
3 Mr. J. Bruton asked the Taoiseach the plans, if any, he has to change the terms of reference of the National Competitiveness Council, which require it to report to him on key competitiveness issues; and if he will make a statement on the matter. [1716/00]
Since its establishment in 1997, the council has played a valuable role by analysing Ireland's competitive position and making policy recommendations to Government. It has now published two annual competitiveness reports and will publish a further report in the first half of this year. The council has also produced a number of policy statements on relevant issues and has provided direct input to Government decision-making at a number of levels.
I understand that Forfás, which provides the secretariat to the council, has suggested a number of amendments to its terms of reference. These are being considered by the Department of Enterprise, Trade and Employment and my Department. They are essentially technical changes, which aim to reflect, with greater clarity, the role and functions of the council.
The competitiveness council continues to have an important function. The council's role will be renewed by the Programme for Prosperity and Fairness and I look forward to continuing to receive reports from the council.
Will the Taoiseach ask the advice of the council on the impact of the current 4% inflation rate, the highest rate in the past ten years? Will he ask the competitiveness council for its views on the impact of such a rate of inflation on Ireland's competitiveness, given that it is almost twice as high as the EU average?
In all its reports and deliberations and all the meetings I have with the council from time to time, it raises all matters of concern to the economy. I have no doubt it would have a view about the high rate of inflation this year.
What is the Taoiseach's view about the 4% inflation rate? Is he concerned about it?
As I said here two weeks ago, price stability is an important matter of economic policy. I am conscious the Government, through its policies, by putting a tax on cigarettes has put up the rate by about .78% of 1% and there are other matters of concern. We have to continually reflect on what is happening. Interest rates, petrol prices and the price increase in cigarettes have created the upward trend in recent months. The Government always takes due recognition of the monthly figure, whether it is lower or higher than the previous figure. Now that the rate is edging upwards, the Minister for Finance will take whatever action he can.
What action can he take?
As the Deputy is aware, the Minister for Finance can attempt to do a number of things. We can attempt to ensure competition in the economy. We can make sure that areas where there are price increase, such as petrol, can be examined by the Consumers' Association of Ireland, as Governments have done for years. All these matters will have to be examined closely.
What can the Minister for Finance do?
The Deputy should desist.
My question is in order.
The Deputy is aware he can pursue this matter in many other ways but it is not in order to pursue it in relation to this question.
I am sorry, Sir, but I protest at the way the Chair is preventing me from doing my job. The Taoiseach referred to what the Minister for Finance can do. Arising from his reply, will the Taoiseach indicate what it is that the Minister for Finance can do, in practice, about such a high rate of inflation, given that he has now set the budget?
That question is not an appropriate one in relation to Question No. 3?
It is not appropriate that the Chair should intervene in this fashion.
That is what the Chair is here for.
It is not. The Chair is not here to frustrate Question Time.
I rule that the matter of inflation is not related to this question, which is about possible changes to the terms of reference of the competitiveness council.
Can I then inquire from the Chair how does one measure competitiveness other than by rates of price increases? Will he advise me on that?
The Deputy should table a separate question on that matter.
This is a question about competitiveness and one of the cardinal measures of competitiveness is the rate of price increases.
I have allowed the Deputy some latitude.
You have not. You have prevented me from asking my question.
This question before us is about possible changes to the terms of reference of the competitiveness council.
The way the Chair is curtailing me, as Leader of the Opposition, from doing my job is not appropriate.
The Deputy should not challenge the Chair.
I am challenging the Chair.
The Chair's word on this matter is final and the Chair has pointed out that it is not relevant to the subject of the original question.
I assure the Ceann Comhairle that the debate on this question would have concluded long ago if he had allowed me to ask my supplementary question which was in order and which arose directly from comments the Taoiseach made. It is entirely in order.
I have ruled on this matter and the Deputy should desist. He is aware that there are many other ways to pursue it. However, it is not in order to pursue it in respect of this question.
I am sorry, Sir, but I must protest at the way you are preventing me from doing my job.
The Deputy should resume his seat.
The Chair is preventing me from doing my job.
The Deputy should not make those charges against the Chair.
If Deputy Ahern was in my position, as he has been in the past, he would be equally upset by such an interference.
The Deputy should not make those charges against the Chair. The matter to which he refers is clearly not in order.
I will not withdraw the charges.
I have already written to the Ceann Comhairle in respect of the issues to which Deputy Bruton refers and my letter is still with him. If I am in order in doing so, Sir, I wish to—
I will have to hear the supplementary question before deciding if it is in order.
We cannot do our job, Sir, if you continue to make rulings of this sort.
I share Deputy Bruton's concerns in that regard.
It is also unprecedented that the Chair should—
Has the National Competitiveness Council been in contact with the Departments of the Taoiseach or Finance to express its concern about the increase in the annual rate of inflation?
Again, the original question inquires only about a change in the council's terms of reference.
I will put it another way, Sir. With regard to the terms of reference and any possible changes thereto, have the Department of the Taoiseach or the council suggested that any changes in those terms of reference should have regard to the lack of control the Government is exercising in respect of the effects of inflation on the economy? Is that question in order?
The Taoiseach may comment on the question of possible change in the terms of reference.
Those matters do not arise because they are technical in nature. The changes are designed to clarify the functions, membership and procedures, they will not affect the substance of the council's work. I have no doubt the matters to which the Deputies refer will be alluded to in the annual report which, as stated earlier, will be available later in the year.
Is it not appropriate that there should be changes in the terms of reference to take account, in the recommendations the council will make, of the fact that our inflation rate is twice as high as the European average and is the highest in the euro zone? Should changes not also be made to take account of the fact that, notwithstanding the Taoiseach's earlier reply, when the budget has been framed there is very little the Minister for Finance or any other Minister can do about inflation, now that we are tied to the euro?
The spirit of what the National Competitiveness Council is doing is to try to ensure that our economy remains in its current state of competitiveness and that we continue to pursue policies which will allow us to remain at our high position in the league of competitiveness. We are doing that very successfully.
Ceist 4.
On a point of order, I ask the Chair to seriously reconsider its approach to the way it deals with questions.
The Chair always takes these questions seriously.
I hope it will. I have been a parliamentarian for almost as long as the Ceann Comhairle and I have never seen Question Time interfered with in this way before.
The Deputy should not continue in this manner. I have called Question No. 4.
I ask the Ceann Comhairle to bear in mind my comments. I do not believe there will be any party division on this matter. This type of behaviour is not conducive to good order in the House.
The only thing the Chair bears in mind is Standing Orders. We will proceed to Question No. 4.
There has always been a tradition in this House that a degree of latitude is granted on Taoiseach's Question Time, which is the only opportunity we have to question him.
I have allowed that degree of latitude.
The Ceann Comhairle is aware—
We must proceed to Question No. 4.
I must protest about this behaviour in the strongest possible terms.
