Brian Cowen (Laois-Offaly, Fianna Fail)

There may be few gains to the Exchequer because additional VAT receipts on energy may be offset by reduced expenditure elsewhere. That is the basic point I make to the Deputy. The unfortunate reality is that higher oil or energy prices can lead to a reduction in economic activity. Therefore, if one gains on one side, one loses on the other. People only have so much disposable income. The Deputy can take it from me that if one must pay more for one item, one cannot buy as much of another product.

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