Brian Cowen (Laois-Offaly, Fianna Fail)

My reply to the Deputy's supplementary question was in reference to energy taxes and fuel prices. Thankfully, due to the way this economy has been managed and people being able to take advantage of the opportunities that arise here and in the international economy, we have increased buoyancy in the economy. I am glad that is the case. I presume everyone welcomes that fact. Other parts of the tax system have not been as buoyant as we would have liked. One must look at the entire picture.

Deputy McGrath emphasises the increase in VAT and the question of higher energy prices. I am explaining that, specifically with regard to higher energy prices, a sustained higher energy environment will impact on competitiveness, cost and world growth. Everyone acknowledges that. We have a mix of taxes and lower income tax. When a customer calls to a filling station and pays for petrol, he or she is also paying into a taxation regime which is much better than some of our competitors. These are realities. There is a mix in the taxation system which must deal with competitiveness in terms of job creation. We have created many jobs again this year. Central Statistics Office figures suggest almost 90,000, which is an extraordinary figure under the circumstances.

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