asked the Taoiseach what immediate and definite action the Government propose to take to reduce the cost of living.

The consumer price index has been stable over the past few years. The latest index number, that for mid-August last, was no higher than for mid-August, 1958. There is now a reasonable basis for believing that the forces making for general price inflation have been checked. The Government consider that no circumstances exist to require the reintroduction of any general system of price regulation, and that competition, which is now effective, may be relied upon to keep all prices at the lowest practicable level.

Would the Tánaiste not agree that the price of bread and flour has gone up recently?

And butter.

What we are concerned about here is the general cost of living. That is what the question relates to. I do not think that the supplementary is strictly applicable. If the question had been directed to specific commodities, it might apply.

Can the Tánaiste explain how he regards the cost of living as being stable when it includes an increase of 6d. on the 2-lb. loaf, 4/6 on the stone of flour and 10d. on the lb. of butter? What statistical fairyland does he live in if he believes that for ordinary people that does not constitute an increase in the cost of living?

It has been said that man does not live by bread alone.

Let them eat cake.

The economies and reductions in the other items of the cost of living more than counterbalance any increase.

Come again.

Is the Government satisfied that the increases in the price of bread and cost of electricity are justified?

They would not have taken place if they were not justified.

Is the Tánaiste aware that there are many indirect increases apart from foodstuffs? I am referring to the junk material being turned out for everyday use by the people. This junk material gives only half the usual service and, as a result, people have to buy such goods twice over. If some of our industrial goods going out from the country are as bad——

That is scarcely a question.

I am referring to the junk served to the people, with the result that they have to buy on the double.

That is not improving the position.

But it affects the cost of living.

As do bus fares and electricity rates.