Brian Lenihan Jnr (Dublin West, Fianna Fail)

Yes, heading towards it - it is not reaching that figure. I mentioned the extent to which I agree with Professor Blanchflower.

The matter of thousands of shoppers proceeding across the Border had very little to do with a half percentage increase in the VAT rate. It was caused by the fact that there was a very substantial reduction in UK VAT rates, which policy, incidentally, is now a proven failure. There was also a disparity in excise duty arrangements between this State and Northern Ireland, especially in regard to the price of alcohol. All the research on the subject of Northern Ireland has demonstrated how crucial and central a part that is in the inducement to shop there.

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