Would I be correct in interpreting the Minister's answer as claiming that the exceptional increase in the CPI in the last year is primarily due to factors external to our economy? Could I further ask if he is aware that the two items in the CPI showing the largest increase were tobacco and alcoholic drinks, both of which bore substantial tax by the Government in the budget, whereas the increase in fuel, for instance, shows a lesser rate of increase? Would the Minister agree that the actual breakdown in the CPI tends completely to invalidate his contention and, in turn, validate the contention that it is the Government's budgetary strategy, in particular with regard to indirect taxation which has led to the large increase in the CPI?

No, I do not agree with the Deputy that what he has said about the percentage increase is correct. I have said already that in this particular year ended mid-February there was the unusual situation of two budgets during that period. Both budgets added to indirect taxation. I explained very clearly during my budget statement and in the past two days in the economic debate that as a Government we believed that in the interests of social welfare recipients this was the area where we should get increased taxation in order to meet the needs of that important sector in our society. Is the Deputy suggesting we should have opted for direct taxation? As a Government we did not believe we should do that.

I am suggesting the Minister was incorrect in blaming external factors when it was the Government's own increases that were the factor. Those increases may or may not be justifiable but the Minister should not misinterpret the situation.

The Deputy is making a statement.