Joe McHugh (Donegal North East, Fine Gael)

I will be brief this time and give the Minister some time to answer my question. I came into this job working from the basic premise of thinking globally and acting locally. The Government has gone completely askew. It is blaming global matters and doing nothing locally.

Everybody knows that diesel is €1.40 per litre. The Minister is trying to get people to use environmentally friendly fuels but it has completely backfired. There is a danger that people might start buying petrol cars. There are no incentives for hauliers who have bought environmentally friendly lorries in terms of reduced motor tax for complying with environmentally friendly regulations.

In respect of doing something locally and not blaming global matters, the Minister mentioned countries from the UK to China to the US. In terms of something local, we on this side of the House launched a proposal to reduce the VAT rate from 13.5% to 12.5%, which would affect goods like coal, gas and electricity products. What is the Minister's position in respect of this proposal? Will he consider bringing it to Cabinet because it will directly affect the matter referred to by Deputy McManus, namely, heating oil for people? We are talking about a figure of approximately €300 million that is going directly as a windfall tax to the electricity producers, which could go directly to the consumer. What is the Minister's position on this and will he consider the Fine Gael proposal launched yesterday?

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