Is the Taoiseach shocked that, as he leaves office, consumer inflation is at 5%, bearing in mind that when he came into office in 1997 he inherited an inflation rate from the outgoing Government of 1.5%? Does the Taoiseach agree that this rate of inflation is dangerous, damaging and disappointing for our economy and country, particularly as economic growth is now faltering in a range of areas? The Government made a fuss in recent years about the abolition of the groceries order but only the price of drink seems to have fallen in the meantime, with negative consequences for society.

In his time the Taoiseach has visited many supermarkets, if not to shop then to canvass, and I am sure he is aware that the vast majority of people who shop for families and push the supermarket trolley are women. They are angry at the exploitation of consumers and the fact that the Government is doing nothing to protect ordinary families from the price increases that are currently being experienced.

Is the Taoiseach aware of the rip-off, profiteering and exploitation being experienced by Irish consumers, particularly at the hands of British-based multiples converting sterling prices to euros? The mark up when prices are converted from sterling to euros can frequently be as high as 50% or 60%. Many surveys have been done in this regard recently and one in the Irish Daily Mail found that Gillette Mach Turbo razor blades, which the Taoiseach may use, sold for £11.99, which should be €15.17, but sold in Boots for €19.49. The price difference in this case is almost 30% greater than the exchange rate difference between sterling and euro. Furniture is more expensive and a wardrobe that might cost £1,500 will cost up to €2,500.

Unless one buys Irish.

Only 90 miles down the road from Belfast, the mark ups can be astonishing. The Government has established a series of quangos, including the Competition Authority.

That is a serious wardrobe.

Perhaps it is where the Minister is keeping the electronic voting machines.

The Minister ought to visit stores to see what furniture now costs in Ireland.

Navan is the home of furniture.

Does the Taoiseach have any proposals to ensure the Competition Authority or the National Consumer Agency do anything about this blatant exploitation of Irish shoppers and consumers? We should bear in mind that this is occurring at a time when some people in the Irish Business and Employers Confederation, IBEC, and the Construction Industry Federation are suggesting that workers, particularly those in the construction industry, should take pay cuts. Does the Government propose to do anything about this scandal?

On the Deputy's first point, I do remember what the rate of inflation was when I took office. I also remember that unemployment was at 11%, single people paid tax on €72 per week, there was no minimum wage, old people received very low rates of welfare and the preceding Government gave them an increase of £1.50, one of the most miserable increases ever. I remember all of these things.

The annual rate of inflation, as measured by the consumer price index, was 5% in March and I know this represented an increase on February. The increase was higher than expected, as the Tánaiste said, and was well above the forecasts of other analysts. Inflation in the goods sector was 4.2% in the 12 months to March and this is largely being driven by global markets for raw materials, as has been stated by everyone in every sector of the industry. It is essential that these externally driven price increases are not pressed more by internal factors that could adversely impact Irish competitiveness. We must be careful of this. Some commentators have attributed the higher than expected inflation rate to fuel purchases under hedging arrangements, which reduced the positive effects of the strong euro exchange rate. There are many reasons for the increase in inflation; some are accurate and others may be somewhat stretched.

The annual EU measure of inflation, the harmonised index of consumer prices, HICP, gave a rate of 3.7% in March, up from 3.5%. This figure was above the EU average and the gap remained unchanged in March so I do not think we should talk it up more than is necessary. We must work across Departments and agencies to bring inflation into line as quickly as possible and this has already started with the inflation group. We have already been successful twice in this regard during this decade.

The increase in inflation in the past two years was mainly due to external developments, such as increases in interest rates and European prices. We must do everything we can in all sectors to bring it under control and this process has been under way since the autumn through the social partnership process involving employers, trade unions and State agencies. It does not take away from the projections for the Irish economy. Despite the sub-prime difficulties, difficulties in borrowing and those relating to the inter-bank rate for borrowing, the economy is still in a strong position. We must get through this period as the forecasts for next year and the second half of this year are still positive. We must deal with the difficulties that are, mainly, in two or three areas and have been well identified. I assure the Deputy that they will be carefully watched every month.

In the short term, the budget day forecast was for growth this year of 2.8% in gross national product, GNP, and 3% in gross domestic product, GDP. The forecast has not changed in the analysis of the first three months of the year. We are in a more difficult economic environment, something I have made clear since the autumn, and there is no arguing against the fact that a lower level of the building of new houses has changed some of the forecasts made in the budget. To hold revenues as projected in the budget will be more demanding and challenging and there is a more challenging external environment. Practically every country in the OECD, never mind the 27 countries in the European Union, faces these difficulties. The key is to manage our position as best we can and I assure the Deputy and the House that this is what we are doing not only in the Department of Finance, but in all Departments and State agencies.

When the Taoiseach entered Government in 1997 the inflation rate bequeathed to him was 1.5% and it is now 5%. Irish exporters and manufacturers who sell goods to the UK face ferocious competition because of the value of sterling versus the euro. British multiples and companies that sell on the Irish high street blatantly rip-off and exploit Irish consumers with astonishing price mark-ups.

When the Taoiseach has spare time in the next several weeks, I invite him to take a stroll through Dunnes Stores, Marks and Spencer and other shops operating on both sides of the Border. He will see items marked at STG£3.50 which are then translated into €6.

Many public resources go into the Competition Authority. What kind of competition allows shops to rip-off people? There are many fine people on the National Consumer Agency. What are they doing to ensure the translation of prices from sterling is reasonable? It is a blatant rip-off.

For some time interest rates have not been increased by the European Central Bank which means it is not driving our inflation rate. We have a falling construction market and an easing of house prices. The Taoiseach's analysis is wrong. We are importing a significant amount of inflation through UK multiples and Irish multiples which buy from the UK, making massive profits through the mark-up from sterling to euro.

Is that fair on the ordinary consumer? What can €50 buy someone in a supermarket? How far does €250 go for a family shopping? It is leaving shopping trolleys half-empty. What does the Government propose to do about this?

As I said, the Competition Authority, the National Consumer Agency, Departments and the social partners, as they have done three times this decade, have been examining individual sectors of the economy where there are pressures. Every month those figures are analysed in great detail. They have used their efforts wherever they believe we need more competition. The Competition Authority has produced several reports whose recommendations have been implemented to drive competition in certain areas.

If Deputy Burton's argument were true, the only way of beating this inflation would be through more competition. More aggressive competition is the only way to change that. It is necessary to move away from cartels.

While services inflation is higher, it does not cover the areas raised by Deputy Burton. Taking the figures for the past few months, the consumer price index, CPI, average has been at 3%. The comparable harmonised consumer price index, HCPI, forecast is 2.4%. CPI figures for the year to date imply that forecast may come under pressure if the trend does not moderate in the year. That is the information we have got from the analysis.

The pick-up in inflation is from the knock-on effect of last year's rise in interest rates, as well as price rises in oil and food. There is no doubt that the demand and price increases for food have exacerbated it. There has also been services inflation.

The efforts of the agencies collectively have been to drive competition or watch price-fixing or price-taking by organisations. All State agencies have been actively involved in that for the past seven months.