Does the Taoiseach intend to take account of the advice of the National Competitiveness Council that the Government should avoid fuelling inflation? As he will be aware, yesterday's report highlighted that Ireland is now the joint most expensive country in the eurozone for consumer goods and ranks fourth most expensive of 16 countries for insurance premia per capita while our industrial electricity costs rank third most expensive of nine countries. This will come as no surprise to consumers.

A website launched by my party ten days ago to deal with this matter has been inundated with complaints from people throughout the country, including, for example, a man in Dublin who was charged €2.50 for a pint of tap water with a splash of blackcurrant juice, a man who paid €3,200 for a cooker, whose equivalent price in Britain was €1,700, and a young man quoted €4,000 for insurance for his van, who paid the equivalent of €90 when he lived in Australia. Has the Taoiseach taken cognisance of this report and will this be reflected in attempts to control inflation, keep down stealth charges and limit increases in charges on hard-pressed consumers tomorrow?

I regularly engage in discussions with the Competition Authority and take account of its views in many areas. In its reports over the years, it has highlighted many issues which we have not only taken account of but implemented. The major example is the provision of resources and staffing to set up the Competition Authority and the legal powers to deal with areas. It has commenced studies across the professions, examining how it can deal with these issues. I know this has taken some time. They have engaged in discussions across all the major professions in an attempt to seek control of costs and price inflation. This is one of the major areas. They have also recommended many other initiatives for the country going forward. The social partners anti-inflation group has also helped since it was set up. I know international positions have helped us, but we have reduced the rate of inflation from more than 5% to less than 2.5% and it is continuing to decline.

The Deputy is aware of what we have been doing in terms of insurance costs. That is helping, but as I said during Question Time, competition is ultimately required. We have seen concerted action in terms of the introduction of penalty points, changing the legal framework and the introduction of tougher legislation both in the legal area and in the area relating to the Tánaiste which will have a successful part to play. A big part of the inflation problem in recent years was imported through a weaker euro and higher energy costs. We are an open economy and we cannot get away from those issues.

As regards charges, we cannot look for better services one day and then complain about the cost the next day. I do not accept that argument. If we want better services, we must ensure they are efficiently delivered. When inflation was at its worst at 5.3% or 5.4%, less than one quarter was related to Government charges. Those charges will ensure better services. We cannot have it both ways. I discount that argument.

As regards competition, the groceries order and the retail planning guidelines are big factors in terms of competition. However, as soon as that is mentioned, the lobby groups, such as IBEC, become involved. Mr. Burgess used to be a regular presenter of the case when he wore his other hat and was totally opposed to it. He understands all the arguments about why we cannot do that. There is not any doubt that if the groceries order were removed, it would have a good impact on inflation and the demand price. The same applies to the retail guidelines. However, the entire food sector joined together and made a good argument that employment in the indigenous food sector would be reduced. It accepts that prices coming in would be lower.

I know it is easy to talk about competition. However, in any discussion I have had on the retail prices order, the entire food sector and the private sector, such as IBEC, the Chambers of Commerce of Ireland and RGDATA, have said we should not do that. They are usually supported by all parties in this House. We like to challenge some of the issues. If we dealt with them, we would bring down prices. However, people do not want to do that.

The Government does nothing.

There is a strong understanding that people are being ripped off. It is fine for the Taoiseach to refer to studies, discussions and controlling costs. However, studies are not required to determine that last year VAT increased by 8%, motor tax by 12%, hospital charges by 26%, the drugs refund scheme increased by 31%, VHI payments by 18%, cigarettes and alcohol by 15%, bank and card charges by 108%, bin charges by 29%, ESB bills by 13%, college fees by 9%, parking rates by 25%, bus fares by 9% and the television licence fee by 40%.

The Estimates for 2003 show that the threshold for the drugs refund scheme will be increased by €8, accident and emergency charges will be increased from €40 to €45, the cost of a private bed in a public hospital will be increased by 15%, the cost of an overnight stay will rise by €5 to €45 per night with a cap of ten nights per year.

Where are the backbenchers now?

Third level student registration fees will be increased by €80 to €750, the fee for the junior certificate examination will be increased by €10 to €82, the leaving certificate examination fee will be increased by €10 to €86 and development levies of between €6,000 and €30,000 are likely to raise €700 million from house buyers.

Shame.

Allow Deputy Kenny to conclude without interruption.

One does not need any discussions, studies, analyses or reports to understand that is rip off Ireland over which the Taoiseach presides.

The Government is the culprit.

What about the development charges?

I will not jump to give the other figures. The Deputy is comparing us with some countries where prices are allegedly lower, but where the unemployment rate is more than 10%. The European average is more than 8%. Economic growth in Europe is 0.3%, whereas it is more than 2% here where our financial situation is lower—

We are looking at last year and the year before.

—and our income tax take is almost 10% lower than it was a year ago.

What about the stealth taxes?

It is Deputy Kenny's question. Deputy Allen should not undermine his leader by asking questions.

When stealth taxes are charges for services, they are right. I will gladly defend service charges.

What about the development charges?

People paid for the services.

Our inflation rate, which started this year at more than 5%, is now only a little more than 2%. We are creating more jobs than any other country in Europe and we have more people in third level education.

Students cannot afford to go to third level.

We are spending 5% of GDP on infrastructure, which is almost double what most countries are doing. It is the right thing to do for a developing country. If one wants the country to decline, one will not charge for anything. I challenge some of the areas where people say we should do something while prices are different. Tomorrow we could change the position and bring prices down if we did away with the groceries order and the retail planning guidelines and allowed all foreign goods into the country. This would drive down prices and undo our own sector.

The Taoiseach could, but will he?

Foreign goods are coming in unknown to the Taoiseach.

Allow the Taoiseach to conclude.

Unfortunately, I did not hear that in much of the analysis today or from the Competition Authority because there is a downside to it. If we are having a debate about these issues, we should consider the underlying factors. The other issue is wage inflation. These are the benefits. That is why people are working in this country. That is why we are not on our knees like many other economies.