Inflation target
Cluskey challenged the failure to meet the White Paper’s inflation target and asked whether oil prices explained the increase. Fitzgerald cited international inflationary pressures and acknowledged that domestic measures, including budgetary support for social welfare beneficiaries, also contributed; he rejected Cluskey’s claim about the budgets’ share.
But it does not. In regard to Question No. 25, the Government, in the White Paper entitled Programme for National Development 1978-81, stated that an inflation rate of less than 5 per cent would obtain in the current year so to what do they attribute the present rate of approximately 21 per cent? Solely to the oil increases?
Comment on this
The White Paper about which the Deputy is talking also pointed out that the future deterioration in the national environment then evident would have an adverse effect on the prospects for our economy. Is the Deputy suggesting that we, as an economic entity, or island, could——
Comment on this
On a point of order, might I ask the Minister, for my own benefit — because I am somewhat confused — how he defines "national environment"? I know somebody wrote it down there but how does he define it?
Comment on this
Is the Deputy saying to me that we live as an entity without being affected by international factors? I explained to the Deputy——
Comment on this
I have asked the Minister to exclude the increased oil prices, or is he attributing the whole lot to the increased oil prices? Is he attributing the present rate of inflation — 16 per cent in excess of their predictions — totally to the increased oil prices?
Comment on this
The Deputy must be aware that all EEC and OECD countries outside of the oil producing countries saw increased inflation in that intervening period. It is unreal for any Deputy to suggest that it could have been possible to avoid that situation in a country like ours.
Comment on this
Is the Minister saying that although his Government published a document saying that inflation in the current year would be less than 5 per cent and it is now running at 16 per cent in excess of that, it is all due to the oil increases? If the Minister is not saying that what are the other contributing factors?
Comment on this
Will the Minister not agree that at least 8 per cent of inflation is the direct responsibility of the budgets introduced over the last two years?
Comment on this
The impact on the world economies had a major effect on our inflation rate. Some difficulties did occur at home and we contributed to the increase in the CPI but the reason we did was to help the social welfare beneficiaries. That was a major factor in the increases.