The Minister for Finance, Mr McCreevy, has warned exporting companies that decisions by them to increase prices would be detrimental to their long-term success.
Addressing the Irish Exporters' Association (IEA) yesterday, Mr McCreevy cautioned that "being greedy" could damage firms and those which succumbed to the temptation would eventually fail.
"It is vitally important that we all do our utmost to restrain inflation. Everybody has a part to play in controlling costs and ensuring the economy evolves in line with the terms of the Programme for Prosperity and Fairness," he said.
Mr McCreevy pointed to the measures recently taken by the Government to tackle inflation, including a prohibition on increases in levies or charges by public bodies for the remainder of the year.
However, the IEA president, Mr Brendan Farrell, warned that export growth was in danger of slowing or stopping altogether unless there was immediate and urgent action to correct a number of major deficiencies that was starting to appear in the economy.
He said inflation was growing so fast that there was a danger it had already past the point where it was a long-term problem.
Initial indications, contained in figures released yesterday by the Central Statistics Office, showed that the surplus of exports over imports fell in April after coming in at another new record of more than £2 billion (€2.54 billion) in March.
Problems facing exporters, according to Mr Farrell, included: labour shortages; road infrastructure lagging behind increasing demands; a public transport system unable to meet demands; affordable housing; and an inadequate telecommunications infrastructure.
However, Mr McCreevy pointed to the pro-active immigration policy which had been put in place to allow people from outside the EU take up employment in Ireland. "Promotional activities are being undertaken by FAS and the embassies and consulates abroad, to ensure that opportunities here are well publicised."
He added that the National Development Plan would address infrastructure deficiencies. He also pointed to the amendments made to the Planning Bill which would allow An Bord Pleanala to give priority to major infrastructure development.
"These measures should lead to a perceptible improvement in the speed with which infrastructure projects can be completed. This should be of particular benefit to exporters," he added.
Yesterday's figures from the CSO showed a seasonally adjusted surplus of exports over imports in March of £2.08 billion with exports coming in at £5.36 billion and imports at £3.28 billion.
Initial indications for April showed a fall off in the surplus to £1.61 billion on an unadjusted basis with exports of £4.82 billion and imports of £3.2 billion.
In the three months from January to March exports to the US grew 39 per cent to £2.45 billion with exports to Great Britain up 21 per cent to £2.9 billion.
Exports of organic chemicals increased fastest at 42 per cent over the three months, to £2.76 billion, with computer equipment up 19 per cent to £3.44 billion.
Imports from Britain were also up 25 per cent to £2.99 billion with imports from Belgium up a huge 115 per cent to £218 million.
