Dáil debates
Wednesday, 9 December 2009
Financial Resolution No. 1: Excise (Alcohol Products)
7:00 pm
Eamon Gilmore (Dún Laoghaire, Labour)
If this were a stand-alone measure, I could see merit in it. I understand there is considerable cross-Border traffic in regard to the purchase of alcohol, that this, in turn, is leading to the purchase of other goods across the Border, and that a reduction in excise might halt and re-balance the situation. However, this is not a stand-alone measure. It has to be seen in the context of the wider budget, and has to be evaluated along with the other measures contained in the budget.
We are seeing significant reductions in child benefit, an attack on families and reductions in the payments that are being made to blind people, carers, those who have lost their jobs and widows. It is generally regarded that the budget of February 1982 fell on the VAT being charged on children's shoes. In fact, the vote that night was not on that issue at all, and the budget fell on excise duties on alcohol. The arguments made were on the wider budget, however, and the same principle applies here. I cannot see how the Government can justify reducing child benefit, which puts food on the table for children, and at the same time reduce excise to put drink on the counter for adults. This measure has to be evaluated against the entire budget and against the lack of fairness which is contained in it. For that reason, I am opposing this measure.
There is an additional reason that, in the context of the budget, this is an unwise measure. One of the purposes of this budget and one of the reasons that the €4 billion adjustment is being made is in order to restore some international confidence in this country. I have to wonder how this measure will be viewed in the international press, for example. Here we are, a country where the public finances are in trouble and where all of these harsh measures are being taken, and what is the Government doing? It is reducing the price of drink. Unfortunately, that is the way in which this will be judged by some abroad. For those reasons, I oppose this measure.
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