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Dáil
‹ An tOrd Gnó - Order of Business

Inflation and wage claims

Summary

Deputy Barry challenged the Taoiseach over inflation, wages and his remarks on a wage-price spiral, arguing workers’ pay was being unfairly targeted. A heated exchange followed as the Taoiseach insisted he had called for targeted, social-partner discussions to protect incomes without fuelling inflation.

The Taoiseach raised some interesting points in the previous discussion about a wage price spiral. He seemed to indicate he was against the idea of workers submitting claims for pay increases that would be in line with inflation, leaving aside the fact that he did not seem to express the same concerns when Robert Watt got a pay increase of €81,000. It is one rule for the top people and another for ordinary working people.

Let us look at the matter at hand. We are told the consumer price index is up 5.5%, and that does not include many costs, including rent. The real rate of inflation for working people is higher. It seems that what the Taoiseach is saying in reality is that workers must accept a pay cut or suck it up and not put in for higher wage increases. I think workers should put in for higher wage increases and pursue them in a vigorous fashion.

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The time is up.

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I have a final point. There is talk of giving people €100 when their energy bills are up by €1,000 per year. That is a joke.

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Once again, the Deputy is clearly distorting what I said. I never said anything of that sort. I said the Government must enter into discussions with social partners and others to see what would be the most targeted and effective way to give families and workers a way to protect their disposable income without adding to the inflationary cycle. That is what I said.

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No, the Taoiseach specified wage inflation.

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I am talking to Deputy Barry.

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That is not what the Taoiseach said, in fairness.

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It is what I said.

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It is what I said. Sorry, Deputy. Let us not start distorting.

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The Taoiseach is wrong.

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The Deputies can do that when they are part of the Opposition. They can always label the Government as wrong.

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The Taoiseach was targeting the idea of-----

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I was very clear in what I said. I said we would enter into discussions with the social partners. It is on the record. I mentioned a more targeted approach, and I instanced as an example the Vincentian model in terms of minimum income standards.

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Let us check the record of what the Taoiseach said.

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I instanced the changes that have been made already in health-----

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Let us check the record of what he actually said.

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-----relating to the eligibility of children for GP care, the drug payment scheme threshold being reduced and hospital charges for children being reduced.

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The time is up.

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There are targeted ways of doing this without adding to the inflationary cycle. That is what I am saying.

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