James Reilly (Dublin North, Fine Gael)

The Minister mentioned a newspaper article on this important matter. Many people think cross-Border shopping, which is hurting many people, does not involve people outside Deputy McHugh's part of the country. The traders in Balbriggan could tell Deputies that it is also affecting people in my constituency of Dublin North. I accept the Minister's point that it is not all about tax. If it is clear that our VAT rates are causing a problem, we should reduce them. Specifically, I have twice asked the Taoiseach to consider reducing the VAT rate that applies to the cervical cancer vaccine from the higher rate to the lower rate. An increase of 10 cent in the price of wine, cider, spirits or beer would meet the cost of a reduction.

I accept that the law of diminishing returns applies to tax increases. I am sure some officials from the Irish Cancer Society would love to meet the Minister. I am sure he would look after them. The society has proposed an increase of €2 in the price of a packet of cigarettes, principally to reduce consumption. Such a move might cause the law of diminishing returns to apply not only to the tax take but also to the number of heart attacks and cases of cancer. Will the Minister remove cigarettes and other forms of tobacco from the consumer price index?

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