Dáil debates
Wednesday, 9 December 2009
Financial Resolution No. 1: Excise (Alcohol Products)
7:00 pm
Brian Cowen (Laois-Offaly, Fianna Fail)
I am just making that point that it is a nebulous and fallacious argument. In dealing with that issue, the important issue is to have proper education on prevention and promotion of responsible drinking. I take the point that binge drinking is an unwelcome phenomenon in this country and one which needs to be addressed. It will not be addressed in respect of the excise duty rates on alcohol. As I stated, if that were the case, the evidence would be very much in favour of moderation, rather than the immoderation about which speakers have been complaining and worrying in some of the contributions thus far.
Regarding the question of economic stimulus generally, the economic stimulus of any budget in the present circumstances must be to cut our expenditures given the level of revenues we are generating. This budget is succeeding to the extent that it seeks to stabilise a deficit which has emerged and must be brought under control and reduced in the coming years as per the plans we have with the European Commission, as members of the euro area, to meet our obligations under the Stability and Growth Pact. That in itself provides a confidence factor.
In addition, the Government's capital investment programme totals 5% of GDP. Considering that we are facing into 2011 with a contraction of perhaps 0.4%, this in itself indicates the important stimulus the capital investment programme represents. Apart from this, on the current side, we have the employment subsidy scheme and the stabilisation fund. Also of great importance is the role played by social welfare payments in maintaining many tens of thousands of people who unfortunately are in short time or part-time work. The automatic stabilisers provided by our social welfare system run into the hundreds of millions of euro in terms of support for people who find themselves short of full-time employment but, thankfully, not in full-time unemployment.
There are many arrangements, whether specific enterprise supports or in the job training or activation areas. We are increasing to 180,000 the number of people we have this year in these areas. Hundreds of millions of euro are being properly expended in seeking to support those who are in unemployment, providing training and activation opportunities for them, maintaining support through the social welfare system for part-time employment and, most important, taking the necessary macroeconomic decisions, such as an adjustment of €4 billion for the coming year, to bring about a situation where we are more cost competitive, those who are in full-time employment have some prospect of maintaining their position and the companies in which they are employed can return to greater profitability and trade effectiveness and thus increase job security. That is the means by which the stimulus in this budget is constructed. To reduce all of this effort and activity to the suggestion that this is the prime stimulus factor is not correct. We are all aware that we live in a far more diverse and sophisticated economy than that.
I commend the resolution to the House on the basis of the purpose for which it is directed, namely, to seek to improve cross-Border trade to the benefit of this jurisdiction on the basis that there is evidence, both empirical and anecdotal, to confirm that the sale of alcohol in Northern Ireland is an attraction to shoppers from the Republic that is causing a wider haemorrhage of revenues from the country by virtue of people shopping more generally in the neighbouring jurisdiction as a result. I ask that people accept the recommendation in that spirit. Some of the rather extreme arguments I have heard are not the basis for this motion being brought before the House.
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