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Dáil Éireann díospóireacht -
Thursday, 23 Oct 2003

Vol. 573 No. 2

Written Answers. - Price Inflation.

Dan Boyle

Ceist:

22 Mr. Boyle asked the Tánaiste and Minister for Enterprise, Trade and Employment if, in view of the State provided services rise in prices by 15% in the year to the end of January 2003 and the inflationary VAT increases in budget 2003, she has sought a change in the policy of increasing indirect taxes and charges to solve budgetary difficulties. [24598/03]

The Government is fully committed to pursuing policies which reduce inflationary pressures. In this regard, as part of the Partnership 2000 agreement, the National Competitiveness Council was established to report to the Taoiseach on key competitiveness issues together with recommendations on policy actions required to enhance Ireland's competitive position. The Council's recent Statement on Inflation, which was issued in May 2003, recommends, "that the thrust of Government policy in 2003 should be to reduce the rate of inflation by avoiding further increases in customs and excise duties, VAT and administered prices for the remainder of 2003 and in Budget 2004". The Minister for Finance is fully aware of the contents of this report.

I welcome the sharp decrease in annual inflation to 2.9% in September. Services sector inflation has reduced from 8% early last year to 4%. The effective reduction in inflation requires actions by all social partners, including consumers. Government must also vigorously play its role and it will be informed in its actions by advice from the National Competitiveness Council.
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