The Irish regional secretary of the Amalgamated Transport and General Workers Union, Mr Mick O'Reilly, joined SIPTU in calling for more active measures to tackle inflation yesterday.

In a policy document entitled Inflation: The Acid That Corrodes Workers' Wages, he argued for flexible excise tax on oil that would stabilise fuel prices, selective cuts in VAT and extensive price controls in sectors where over-pricing and profiteering were taking place.

He also urged greater investment in public transport, including cheaper fares, a public sector network of subsidised childcare places and "an open border immigration policy to increase labour supply".

Mr O'Reilly accused the Government of attempting to "ride out" the crisis because it was "policy bankrupt on the issues of inflation". However, increasing prices meant living standards were either being cut or only marginally improving for people dependent on pay or social welfare increases.

Among the ATGWU's main recommendations are:

Stabilise oil prices through a flexible excise tax to maintain a fixed retail price regardless of variations in world oil prices

Reform VAT by reducing rates on selected items, while extending the VAT base by imposing a 5 per cent rate on some items currently zero rated

Index-link wages and social welfare payments to inflation

Extend price controls to economic sectors where over-pricing and excessive profit-taking exist.