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Taoiseach Michael Martin warns: ‘We are moving towards a war economy.

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Ireland is moving towards a “war economy”, with Russian invasion of Ukraine Taoiseach yesterday warned that it will increase the cost of food and many other everyday items.

Michael Martin cannot rule out the possibility of a shortage of certain food items as he says war would affect Ireland, “especially on the price of many products”.

It came as Independence Sunday may reveal more details of the warning to the final Cabinet week on the impact of shortages of ingredients used in food production.

Speaking in London yesterday, Mr Martin said: “I think Europe is capable of supporting itself. I think there will be a very important issue around cereals and it is unlikely that Ukraine will plant this season. That has very serious consequences across the continent, will affect Ireland. That’s why there are was discussed with Irish agricultural organisations.

“We also have to be honest with people – war will have an impact. The exact nature of that impact is yet to be determined, but essentially, commodity prices are skyrocketing, which will affect our economy and the three big areas right now are fuel prices, real products and general merchandise around metals, etc. on.”

Ministers were warned in a secret memo last time weeks can occur a shortage of natural gas and carbon dioxide used in food processing can lead to rations, which can therefore lead to a reduction in food production.

“There will be significant and immediate impacts on domestic food supplies and on agricultural incomes,” the cabinet said.

“There will be an impact on food,” Mr. Martin said. I’m still not clear on specific areas of shortfall etc. I don’t want to scare players at this stage, it’s just that I’m not in a position to predict this. But I want to tell people that war is going to affect us, especially on the prices of many products, and that is probably the earliest manifestation of war through food and everything else.”

Asked if Ireland is currently in a “war economy” where governments must choose to allocate resources carefully while also meeting the vital needs of domestic consumers, Mr Martin said. : “Not quite yet, but we’re moving in that direction.”

Meanwhile, a leading retail expert is warning that supermarkets are bracing for price increases “in the seven-zone region.” to 12pc” from major vendors, the increase will have to be passed on to consumers.

Damian O’Reilly, TU Dublin lecturer in retail management, predicts this will push food price inflation to around 4pc in the coming weeks, hitting consumers hard for everyday products like cakes noodles, milk and poultry.

“For grocery retailers, prices should go up anywhere in the seven up to 12pc from major suppliers. This will lead to a significant price increase,” said Mr. O’Reilly.

“That will likely push food inflation to around 3.5pc or 4pc from 2.9pc currently.

Last night, Russian ground forces were entering the Ukrainian capital Kyiv and the British Ministry of Defense said they were 15 kilometers from the city.

The Ukrainian government confirmed that as it continued to attack the port city of Mariupol, Russian troops shelled a mosque that sheltered more than 80 people, including more than 30 children.

Speaking at a press conference yesterday, the president of Ukraine Volodymyr Zelensky said about 1,300 Ukrainian soldiers have been killed in skirmishes since the start of the Russian invasion.

He said he would send Russia to drop carpet bombs on the Ukrainian capital and kill their own people to take over the city. He added that “if that’s their goal, let them come”.

https://www.independent.ie/irish-news/news/were-heading-towards-a-war-economy-taoiseach-micheal-martin-warns-41440947.html Taoiseach Michael Martin warns: ‘We are moving towards a war economy.

Fry Electronics Team

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