Kieran O'Donnell (Limerick East, Fine Gael)

The Minister introduced this provision as a revenue collection measure, but I expect that it will have the opposite effect. He introduced it for the month of December, but the increase of 0.5% will drive down the tax yield. Representatives of the small business sector appeared before the Joint Committee on Finance and the Public Service yesterday. The sector is struggling to make ends meet. December has been a rough time for it, as the numbers shopping are decreasing. People are conscious of the extra 0.5% in VAT and are going North. The Minister expects traders to adjust everything in the middle of the November-December VAT period because of 0.5%.

The measure is impractical and will drive down revenue for the month of December. The decision should be reversed. Last Thursday, the Minister assured the Select Committee on Finance and the Public Service and the House that a report on the impact of the VAT changes in the South and the North has been drafted by his officials. While we wish for the North to do well, we must be competitive and consider our businesses and jobs on this side of the Border. The Minister's measure will lead to a reduction in taxes and job losses. These are the practicalities.

When will the report be ready? It will hardly be ready before 7 o'clock so that we can make the changes. This is an impractical measure. It will not deliver any additional taxes and will instead result in job losses.

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