Seymour Crawford (Cavan-Monaghan, Fine Gael)

I welcome any reduction in costs. The increase from 21% to 21.5% in the second last budget was unreal at the time. Subsequently the Minister did admit that it cost the country €700 million in a year. It has caused much damage to the nation because, as Deputy Penrose said, it was not altogether the amount but it happened at the same time as Mr. Alistair Darling reduced the rate by 2% in the opposite direction and it meant a 6.5% differential. That differential, together with the change in the value of sterling as well as the drinks issue, meant a major exodus of shoppers north of the Border.

Given that the Minister has seen the light in respect of the 21.5% VAT rate can he see the light in respect of the 13.5% rate and reduce it to 10%? Employment is in a desperate state at present. The building trade is dead, yet many small jobs could be done if they were more competitive. A builder employing a plumber from County Monaghan has to pay a minimum of €22 under law, yet he can get a plumber from Middeltown, County Armagh, a couple of miles down the road, for €12. We are still in a seriously uncompetitive position and we must look at every means to try to rectify that situation. We are losing work to Northern Ireland contractors and we are putting up capital in this country to provide those jobs for them. I want to see free movement of people between North and South but it is all one way and the Minister knows that as well as I do. I welcome the particular move to reduce VAT by 0.5% but it is not sufficient. I ask the Minister to look at it again before the finance Bill to see what can be done in respect of the 13.5% VAT rate from tourism, building and employment points of view because, without jobs, we can go nowhere.

See this speech in context