Govt not doing enough to ease inflation - IBEC
Irish business representative IBEC has warned that the public sector needs to do more if inflationary pressures are to be curtailed.
IBEC senior economist Fergal O’Brien said: "Falling oil prices have given some relief on the energy cost front, but October also saw a 34% jump in gas prices, which have now been locked in, despite lower energy prices on the world market.
"The manner and frequency with which the regulator awards these price increases must now be reviewed. The very high increase in electricity prices sanctioned from January will have a significant impact on the cost of living in 2007. The regulatory system has clearly failed to deliver competitive energy prices to date."
Mr O’Brien was also critical of the high level of price increases in other publicly administered services, particularly in education, which experienced a substantial increase in October.
He said: "With annual price inflation for education running at 5.9%; water services and refuse collection at 6.9%; and outpatient services at 6.6%, it is clear that the public sector is not helping to ease inflationary pressures.
"The Minister for Finance must use the upcoming Budget and Estimates process to curtail price rises in all publicly administered services."
