The Government will introduce temporary controls on alcohol prices and freeze increases in charges by State companies for the remainder of the year in an attempt to control inflation, currently standing at 5.2 per cent, treble the EU average.

In a long-awaited package, the Government announced a range of measures designed to deal with inflation which have received a cautious welcome from the trade union movement.

But there is doubt about whether the package will bring down consumer price inflation which is likely to head towards 6 per cent in the months ahead.

According to the Government, the "challenge is to manage the situation over the coming months and this requires the co-operation of all sectors". Further moves in the coming weeks was not ruled out, however.

The package - which follows meetings with the ICTU, IBEC and the Irish Farmers' Association - also provides an additional £40 million (€5.1 million) to the development of child care on top of the £250 million already pledged through the National Development Plan.

The announcement of a significant increase in competition in the licensed trade will be broadly welcomed but there is no immediate increase in the number of licences, which is key to opening up the sector.

Instead, the Government has announced the setting up of a commission on the licensed trade to look particularly at freeing up competition in the off-licence sector. It must report back within three months.

No changes have been made to the Intoxicating Liquor Bill, which will be passed by the Dail this week. The Minister of State for Labour, Trade and Consumer Affairs, Mr Tom Kitt, hoped the provisions already contained in the Bill such as the extension of licensing hours would free up competition.

He admitted the "licensing system seriously restricts access to the trade" and said a temporary price order was justified. He will consult, however, in order to decide from what retrospective date a price freeze will be imposed. The Government is instead taking the lead itself. After Government intervention to hold off milk-price rises earlier this week the Government now says there will be no increase in charges or fees from public bodies this year.

This would appear to include the ESB and RTE, which is seeking a substantial rise in licence fees, as well as CIE.

As expected, indirect tax change which could undo some of the harm done by a cigarette price rise in the last Budget will be looked at only in the context of the next Budget, as will maintaining living standards for those on fixed incomes, in what is probably a reference to social welfare increases.

Ministers will also meet a wide variety of representative bodies to convey the importance of the need for social responsibility and restraint in price setting.

These include the Construction Industry Federation, the Irish Homebuilders Association, the Irish Auctioneers' and Valuers' Institute as well as the Society of the Irish Motor Industry, the Irish Medical organisation, the Law Society, the Irish Brokers' Association and the Irish Bankers' Federation.

The office of the Director of Consumer Affairs will also set up a system of price monitoring and will be given additional staff and an advertising budget to encourage greater price awareness among consumers, particularly to make people more aware of the differences in petrol prices.

There was also a general commitment to accelerate commitment in the PPF in housing, public transport and gain sharing although again no specifics were given.