Rein in public service costs
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TWO short years ago, before all had changed utterly, CSO figures were giving rise to concern about the steady rise of inflation. The country's competitiveness and continued prosperity were under attack. They still are, but in different and more insidious ways.
The rate of inflation is at its lowest level for almost 80 years, down 5.4pc since June last year, with housing, gas, electricity and summer sales all playing their part.
Successive ECB interest rate decreases have given mortgage holders some assistance although, courtesy of the last Budget, they will lose the mortgage interest relief if their loan is seven years old, or more. Moreover, ECB rates could be expected to begin to rise again as soon as there are signs of recovery in the eurozone.
Shamefully, while prices and costs are slashed in the private sector in a desperate struggle for survival, prices continue to rise in areas which supposedly fall under government control or regulation.
The small and medium enterprises body, ISME, says that businesses are experiencing ongoing increases and fresh costs which can be attributed to the public sector.
Education and health care costs, health insurance, home insurance, and motor insurance, all have gone up, even as the economy flounders.
The cost of pharmaceuticals is ludicrously high compared to other jurisdictions, with people flocking across the border to buy common, over the counter medicines.
At a time of deflation and economic hardship for many, the Government must address its inadequate control of the cost of public services.
