John Lahart (Dublin South West, Fianna Fail) | Oireachtas source

I thank the Chair. I will time myself. I appreciate the Ministers' willingness always to come before the Committee on Budgetary Oversight. The Ministers have mentioned the significant measures the Government has taken to address the cost of living and that there will be more. One that stands out to me and that I have highlighted is the medical expenses threshold measure which has been cut in the space of 18 months. As the Minsters know, the threshold was €124 before people could get free medication on a monthly basis and this is now down to €80. That is a saving of close to €500 a year. It is quite significant then. I refer to some of the other measures as well not least the back-to-school allowance which is a very proactive response.

I want to take into account everything that has been said about the pressures that people are under. I went to buy a pair of shoes recently in Rathfarnham Shopping Centre. I got good value you will all be pleased to know. However, the staff there said that all the talk of the challenges facing the country is having a negative impact on people's willingness to spend. People have become quite anxious about it. There is the message of the fact of full employment and the fact that two weeks ago 200,000 people left this country to take holidays - a very positive sign of an economy doing well. It is an economy that clearly has its challenges and we need people to keep spending money to bring more taxes in and to be able to make the significant impacts we have been making on the cost of living for people. I put the question to both Ministers. Is the fact that very little is being made of the really positive things happening in the economy and that so much negative talk is going on creating an environment where people are anxious to spend, something they are conscious of?