Arthur Morgan (Louth, Sinn Fein)

The Minister for Finance claimed that he is trying to build this economy and yet he introduced a VAT rate of 21.5%. Aside altogether from low income and working families and the nature of the impact of this increase on that category of people — goodness knows, they are very hard hit in today's budget — the small business sector will be affected and it is already crucified with steep charges. I see no encouragement for small business in these proposals and this is a regressive measure. It is the wrong direction to take; the Government should have made a reduction in VAT to 20% or less rather than adding to that scourge of both the small business sector and low income families. I note the resolution proposes that it shall take effect as and from 1 December 2008, so we do not even get Christmas out of it. This is a case of bad Santa. This is a regressive move which is most unfortunate.

The additional cost of fuel and petrol is regressive. It is an attack on workers who have no public transport because, by and large, public transport was neglected by this Government for all of these years. Yet people are supposed to put their hands in their pockets and pay this additional cost.

I note the Green influence in the Government is negated with the additional parking fees at Iarnród Éireann stations. One is ripped off as soon as one goes in the gate to avail of fairly shoddy public transport. The Government is having another go. Somebody on that side of the House should say this is crazy. I agree with Deputy Seymour Crawford's point about the significant custom given to Border petrol stations by people from the other side of the Border. With the introduction of this measure, the days of lengthy queues at petrol stations in Border counties will be well and truly finished. This is most unfortunate. It will penalise people trying to travel to work who must drive because public transport is inadequate.

See this speech in context