Joan Burton (Dublin West, Labour)

Is it not the case that the reason for the problem is an ideological decision by the Government parties and, in particular, the Progressive Democrats, to privatise home care services? Where home helps are provided by the HSE, will the Minister confirm there are no VAT problems? Does he agree the Government has opened a Pandora's box by adopting American-based home care packages so that, inevitably, we face the spectre of VAT being charged on home help services at the higher rate, which is driving their cost sky high? Will the Minister confirm the European Court of Justice recently issued a judgment on service charges on refuse, which stated they are "VATable" because private waste operators claim they face unfair competition? Under EU regulations, they are subject to VAT while local authorities do not have to charge VAT on the provision of services because they are public bodies. This is also the EU approach to toll bridge charges and the Government had to acknowledge this a number of years ago when such charges were subject to VAT at 21%. The Minister needs to adopt a more comprehensive approach to this issue rather than suggesting that he will get away it. A fundamental rethink of his decision to privatise home help services is required. There are complex issues on which the European Court of Justice has ruled but the Minister wants to ignore them.

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