Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)

I move amendment No. 1:

In the second line of subsection (1) of the Resolution, to delete "21 per cent" and substitute 17.5 per cent".

The reasons for the amendments are quite simple. I listened to the Taoiseach speaking on Resolution No. 1 when he referred to the haemorrhage of funds from the Exchequer that should have gone to the Exchequer because of the differentiation in the excise duty. The resolution before the House is a welcome admission by the Government that it made a mistake and some months ago it realised that. It should have realised it when we pointed it out at the time of the budget but, as usual, it was not listening. The resolution before the House seeks to correct that mistake but it is too little, too late. My amendments suggest a reduction to 17.5% in the VAT rate. It is a substantial reduction and it would help ensure many jobs in the retail trade not only in the Border areas but throughout the country would be saved. The proposal would be revenue neutral by virtue of the fact that people would increase spending and people would be retained in employment rather than unemployment. Therefore they are reasonable and, hopefully, the Minister will accept them.

Any change in the VAT rate must come about a little slower than we might wish. Next Monday would be time enough for it to take effect. If we are to wait until 1 January many jobs in the retail industry will be gone. We have to take steps now and send out the message that we in this House are serious about retaining jobs at the very least.

Another aspect of the VAT rate - I heard the Minister mention the goods in question - is that a reduction in same might encourage people to buy sports equipment to enable them get involved in sports and become fit and tackle one of the major health crises, that of obesity. I suggest the Minister consider at another time making sports equipment and the like zero rated for VAT to encourage more people to get involved in sports, to be fit and healthy. It would be cost-neutral because there would be a saving in expenditure on the health services. I would like to hear an explanation from the Government as to why the three amendments will not be accepted. If they are accepted Sinn Féin will support the resolution.

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