Bernard Durkan (Kildare North, Fine Gael)

Any increase in VAT will have a negative impact on business at a time when the latter can ill afford it. Business has come through an extremely difficult time during the past 12 months, particularly in the context of increased oil prices, transport costs, etc. To pile on something of this nature, which will impact on both consumers and those in the business sector, at this stage is hugely negative. This is not a wise decision and I do not know why it was made. It was indicated that the increase will lead to the accrual of €227 million in a full year. That is a considerable sum. When consumers realise the import of what is proposed, the Government will subjected to a reaction that will bear little resemblance to what it received from its backbenchers following the Minister for Finance's Budget Statement.

I am a smoker and I must declare an interest in Financial Resolution No. 5. Everyone welcomes the increase in the excise on tobacco. However, I wish to highlight a matter to which previous speakers did not refer, namely, the old age pensioners who smoke and who received a miserable 3% increase as a result of the budget. These people will lose that increase in its entirety when they buy one packet of cigarettes. Elderly people like their comforts. I accept that smoking may be a bad habit but it is a habit nonetheless. I cannot understand what they have done wrong that they should be punished in this way. Those on the Government benches will feel self-righteous about this matter but they should try to see the other side. It will not be a laughing matter for those who will be directly impacted upon by this particular exercise. The same applies, but not to the same extent, with regard to the increase in the duty on wine.

The increase in the duty on mineral oils will bring in an additional €166 million in 2009. That amount will increase thereafter. Two issues arise in this regard. First, unfortunate motorists are being treated as if there were an alternative mode of transport available to them

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