Brian Cowen (Laois-Offaly, Fianna Fail)

As regards the suggestion of a buoyancy effect in the midst of a deep recession, the reduction of VAT in the neighbouring jurisdiction, for example, has not had the buoyancy effect because demand is the problem. In addressing the public finance position, we must protect our taxation base. In fact, all the advice for the coming months concerns the need to broaden the tax base, rather than narrowing it. As regards stamp duty, we are seeing real reductions in the price of housing, which is determining a small pick-up in terms of sales over the past month or so. One would have to be tentative in making any comment about that, however. We are not suggesting that we are seeing a resurgence in house purchases. However, the idea that a reduction in stamp duty would provide a return to normality is not borne out by the objective facts. In my time as Minister for Finance, I adjusted to a more helpful way of dealing with stamp duty issues for first-time buyers of second-hand homes. First-time buyers of new homes are exempt anyway.

It is important to protect one's tax base in the context of having lost almost 30% of that base in the last two financial years. People will have to consider that fact carefully. That is borne out by the fact that, as regards Exchequer returns thus far, there has broadly been a maintenance of the projection profiled in respect of tax take, albeit a take that is far lower than previous years, including last year. Going from budget to budget, rather than introducing different fiscal responses during the course of a financial year, provides us with that prospect of stability on the tax run, albeit at a reduced rate of take than was the case in the past for a range of reasons, including the level of economic activity which determines the whole matter in any event.

Specific questions on broadband can be tabled to the Minister. Much more progress is being made in that area than is being given credit for. There are certain market issues that must be addressed in the context of the provision of these services. However, I cannot give a further response to the Deputy's question on the issue at the moment.

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