Brian Cowen (Laois-Offaly, Fianna Fail)

The motivation behind the resolution is as outlined by Deputy Ó Caoláin, namely, to try to deal with the phenomenon of cross-Border trade which is causing a major haemorrhage in our revenue base. It is important that we seek to do whatever we can in this respect. I take the point that the main problem in cross-Border trade relates to the differential between the euro and sterling, which has reduced by one third since mid-2007.

I noted from Deputies' contributions that the further speakers' constituencies were from the Border, the less knowledgeable they were of the situation. It is very much the view of people who live in the area that the difference in alcohol prices, while not the determining factor, is, on an anecdotal and analytical basis, an important factor in determining the numbers who are travelling across the Border and while there taking the opportunity to purchase other goods and services. This is not a phenomenon but a fact with which business communities right across the Border area on the Republic side are having to contend.

As has been stated, there have been occasions in the past when the differential was the other way. There is a longer term structural issue that I would like to see resolved by more harmonious rates being applied across a whole range of areas in order that we would eliminate the economic distortions caused by the existence of the Border in the first place. The issue with which we are dealing tonight, however, is that there is a specific problem which we need to address.

It is not correct to suggest that one is contending that this is the major part of an economic stimulus or recovery in the economy.

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