Enda Kenny (Mayo, Fine Gael)

My second suggestion is in respect of this appalling increase in unemployment figures on the live register. I will not pull any punches. Most, although not all, of our domestic mess is the result of incompetence in the Government. I suggest that the Government deal now with a reduction in the lower end of VAT from 13.5% to 10%, as this directly affects the tourism, hospitality, construction and infrastructure industries, where jobs can be protected and created. It would offer some opportunity to people who are strangled by red tape and bureaucratic difficulties and where business is going down the tubes before our eyes.

The Taoiseach as Head of Government has the opportunity to do something about this. I make these two suggestions in the spirit of a constructive proposal. I know a VAT reduction from 13.5% to 10% would require, in part, approval from Europe. This party's connections in Europe are much stronger than those of Fianna Fáil and I am prepared to go out there at my own expense along with the Taoiseach to seek support from the European leaders for whatever approval is necessary.

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