Brian Cowen (Laois-Offaly, Fianna Fail)

As the Deputies know, the main features of a budget point out what we are discussing now in terms of VAT reductions, etc. I have been a Member of the House for 25 years and having listened to the Deputies speak without interruption, I ask them to allow me to continue without interruption.

The reduction of excise on alcohol products is to assist in seeking to reverse what has been happening in recent times. It is not suggested the reduction is a panacea but it is suggested that something positive needs to be done in an effort to stem the flow. It is also the case that many people are finding that a very competitive position is developing in other goods and services in the Republic vis-À-vis Northern Ireland. However, the particular issue of alcohol is having an extraordinarily distortionary effect on the genuine efforts being made by traders in the Republic to confirm the bargains and good cost competitiveness available in retail outlets in the Border region.

It is a bogus argument to suggest the level of excise duty determines output. There is no indication that the reduction in excise will change the level of alcohol consumed, although it may lead to an improvement in terms of the location where alcohol is purchased. By protecting our revenue base in that respect, it will enable us to provide more funds for the general good, about which Deputies have spoken.

There is no Government policy to promote irresponsible drinking. As we know, there are people who suffer from addictions to alcohol and other drugs, legal and illegal, and it has nothing to do with their socioeconomic status or the amount of money they have in their pockets.

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