Cost of living and inflation
Alan Kelly says there will be no cost-of-living package and asks what structural reductions the Government is considering. The Taoiseach cites post-Covid disruption, the Ukraine war and US tariff policy as drivers of inflation and says fundamental issues still need to be addressed.
I know the Taoiseach is going be very sad next week when my great county of Tipperary defeats, in fairness, his great county of Cork in the all-Ireland. I just want to condition him for that. I hope that sadness does not permeate elsewhere, particularly as the Government is doing the NDP and the summer economic statement. There has been a bit of conditioning coming from the Tánaiste and the Taoiseach over the past few days. As we know now, there will be no cost-of-living package etc., but the Tánaiste has said that "the budget will look to see how we can structurally reduce the cost base and the delivery of services". Inflation on food and drink is rampant, at 4.6%. Milk is up 14% and beef is up over 20%. I am intrigued. What structural reductions will come in so quickly that they will have a dramatic impact on people watching us here now as to how they can put food and drink on the table?
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You already have your car signs printed.
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-----that the Deputy has clearly ascribed to us. I would never have the degree of confidence he would have. We are humble people.
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Humble. That is displayed everywhere.
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In respect of the cost of living, fundamentally, since Covid and the war in Ukraine, there has been volatility, uncertainty and turbulence in world markets. Supply chains have been disrupted. That has been a factor in the very high inflation we experienced in the immediate aftermath of Covid and during the energy crisis caused by the war and the Russian invasion. One of the problems now is with the tariff policy adopted by the US Government. The latter is creating further uncertainty and volatility in markets, which does not help to settle the situation in respect of pricing. There are fundamental market issues here-----
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What will be the structural reductions?