Enda Kenny (Mayo, Fine Gael)

I have to assume that the Minister for Finance is speaking for the Government when he says people are whingeing when they are concerned about rising prices. The Taoiseach is well aware there is no VAT on food. The average person's weekly income is now squeezed to the limit with increases in food and fuel prices and mortgage costs. The amount of disposable income available to people has greatly diminished, as is evident in the leaking of confidence in so many sectors of the economy. I listened to a young fisherman a few evenings ago speaking from Kilmore Quay in the constituency of the Minister for Arts, Sport and Tourism. He said that diesel for five days steaming in his trawler cost €18,000, with perhaps no fish at the end of that because the quotas are so small. I also spoke recently to a haulier in Cork. Sending his truck to Belfast requires 300 litres of diesel for the trip there and back. That cost is ultimately passed on to the consumer.

I am disappointed that the Taoiseach does not have an initiative with regard to the mix of excise duties and VAT to ensure they are not used as a further battering ram against the hard pressed consumer. Last week, Deputy Bruton and Deputy Coveney brought forward an imaginative and creative proposition to take back from electricity generators the windfall profits resulting from the carbon allowances given to them and in respect of which they have earned profits of €300 million per year. They got the carbon allowances for nothing. The Deputies proposed that the profit be given back to the consumer through a reduction in the lower rate of VAT from 13.5% to 12.5%. That would impact on the cost of household goods. It would also have an impact on newspapers, accommodation and the construction industry at a time of serious decline in activity in those sectors.

Is that not an example of creative and imaginative thinking with regard to what the Government could do? It could take back a windfall profit of €300 million per year from electricity generators and give it to the consumer. Would the Taoiseach favour taking back that €300 million in the first instance? He might not agree with our proposal of a reduction in the lower VAT rate from 13.5% to 12.5% but would he agree in principle to taking it back? We can then decide how the €300 million can best be used in the interests of the hard pressed consumer.

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