Kieran O'Donnell (Limerick East, Fine Gael)

On Committee Stage of the Finance Bill yesterday the Minister gave a commitment to produce a report on the impact of the VAT differential on retail sales and VAT receipts. Does that commitment still stand? When will the report will be ready, and will it consider the impact in terms of jobs and revenue to the Exchequer? Furthermore, the Minister should reverse the 0.5% increase in VAT, for administrative reasons and also in view of its cost to the economy.

In the last year sterling has fallen by more than 25% against the euro. However, retailers are telling me that the decrease in the cost of the goods they are selling is of the order of 10%. Why? Clearly, wholesalers are not passing on the price reductions. I looked at three products today: the Financial Times, OK magazine and Hello magazine, which are relevant to most people. The Financial Times has a UK cover price of £1.80 sterling. It should therefore cost €2.03, but it costs €2.50. Thus, it is overpriced by 23%. OK magazine is 53% overpriced; it is £2.95 in the UK, so it should cost €3.33 here, but it costs €5.11. Hello magazine is £2.00 in the UK but costs €3.47 here, although it should be €2.25. This means it is overpriced by 54%.

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