Paul Gogarty (Dublin Mid West, Green Party)

It may have helped if Deputy Ó Snodaigh had tabled a parliamentary question a few weeks' ago on this matter. I agree with the sentiments of the amendments in terms of bringing down prices and keeping jobs. The annualised cost of a 0.5% reduction in VAT would mean €167 million. It would be interesting if the Tánaiste or Minister for Finance could elaborate on what would be the estimated cost of bringing in a rate of 17.5%. It might not have been the intention when the VAT rate was increased last year but it turned out to cost the State more than the actual fiscal instrument in the first place. We are hoping that a reduction will have some positive effect.

Deputy Penrose thought it might be a symbolic move and I agree that it is symbolic. The cost of a CD including the profit margin for a retailer in the South of Ireland is €15.99. The current rate of 21.5% VAT, brings the cost of the CD to €19.43. If the VAT is reduced to a rate of 21% then the cost of the CD is €19.34, a saving of 9 cent on a CD. In the case of electronic goods costing €160, the equivalent of a fair-sized weekly shopping bill for some families, then there is a saving of €10 and that €10, when the cost of petrol is included, could be the difference for someone from Dublin or south Louth travelling to the North rather than staying and shopping locally. If the rate were to be brought down to 19.5% that differential would be there again. I would like to see the figures for the cost to the Exchequer if more were to be done as opposed to the benefits in terms of jobs kept and keeping people shopping on this side of the Border.

I have a friend who married someone from Belfast so they travel to Belfast frequently. They were married in Belfast.

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