Currency separation and cost of living
The Minister initially said the effect on consumer prices could not be calculated because import-price data by country were unavailable, but later estimated that currency separation had added about 3 per cent to the cost of living. Members challenged the estimate and its data basis, disputed its implications alongside budget measures, and Harte protested that the Minister was being shielded from questions.
asked the Minister for Finance the estimated increase in the cost of living resulting from the fall in the value of the Irish pound since the break in parity with sterling.
Comment on this
It is not possible to estimate the increase in the cost of living, as measured by the consumer price index, resulting from the appreciation of sterling since 30 March 1979, when the one for one parity with sterling ended.
The increase would depend on the extent to which the price of British produced goods and services can be passed on here in the face of competition from Irish goods and services and from other imports.
Comment on this
Am I to take it — are Deputy Browne and the House to take it — that the Department have not got a clue of the extent to which the separation of the two currencies has contributed to extra inflation here?
Comment on this
The Central Statistics Office do not collect data on unit import values of individual countries' imports, and because we have no data on the movement of the price of imports in the UK it is not possible to discern the effects of changes in the Irish punt ——
Comment on this
Is not the Minister of State in the House at the moment representing a Minister who controls the economic planning element of the Department, and has that element got a clue of the extent to which the extra inflation here has been fuelled by the separation of the currencies? Has the Minister a clue or not?
Comment on this
Is it not a fact that the CSO compile a terms of trade index? If that is so, information regarding the price changes of imports is an essential element in compiling that statistic. Is the Minister telling the House that the CSO have not got that information?
Comment on this
I will repeat for the Deputy that the CSO do not collect data on unit import values of individual countries.
Comment on this
Is the Minister telling the House that 3 per cent has been added to the cost of living index by virtue of our membership of the EMS?
Comment on this
And 4 per cent was added by the budget. Therefore, by two direct actions of the Government the consumer price index is 7 per cent more than it should be?
