Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)

The proposed removal of excise duty on kerosene and liquid petroleum gas is welcome. However, these are marginal decreases and will only bring those rates in line with those North of the Border.

In light of increased dependence on these forms of heating, particularly among senior citizens, was consideration given to whether the value added tax that applies could also have been considered under this proposition? Is the Taoiseach in a position to shed light on that matter? Once we have dealt with the excise duty, the reality is that value added tax is the significant imposition in the context of the Government's take from the overall cost of kerosene and LPG. While this is coming into effect from 1 January 2007, there is a calculated cost measure for the remainder of this year. Do I understand that this is in anticipation of people waiting until the new year before purchasing fuel at the reduced price?

The increase in excise duty on packets of 20 cigarettes by 50 cent and pro rata increases on other tobacco products come into effect from midnight. I am no longer a smoker and in the context of encouraging people not to smoke, this is a welcome proposition. We must demonstrate that stopping people smoking is the real intent behind Financial Resolution No. 3. One cannot fail to take account of the concluding statement in respect of the resolution that it will yield an estimated €2 million in the short time remaining before the end of the month and an additional €112 million throughout 2007.

The Taoiseach is accompanied by a number of advisers and it is important that we demonstrate this mechanism is not intended as another means of gathering revenue from people because they are smokers. Will he clarify that it is motivated by an intention to discourage people who are already smokers from continuing and also to discourage young people who might be attracted to the habit from taking it up? Will he indicate the percentage decrease in the demand for tobacco products that was factored into the calculation of the additional excise duty yield to the year's end and for 2007? That is an important point, in respect of which clarification must be provided. The information I seek should be readily available from the near army of advisers accompanying the Taoiseach. In my opinion, the information to which I refer is important in terms of demonstrating to people, particularly smokers, that the real purpose and intention behind the resolution is health-motivated.

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