Frank Fahey (Galway West, Fianna Fail)

It is quite evident that the decision taken in the UK to reduce VAT to 15% had no other impact other than to increase the level of imports into the UK. This again points to the reason we have got to take the difficult decisions at this time. A failure to do so would result in a catastrophic situation in the public finances.

When I was Minister of State with responsibility for children I played a significant role in increasing child benefit rates which have increased by 330% over the past number of years. This was done at a time when we had full employment and when we wanted to encourage women in the family in particular to go out to work. The result of the increases enabled women to go to work and have child benefit. We made a very conscious decision that the advantage being given to women who wanted to go to work should not be denied to women in the home. Among a number of policy decisions at the time we went for the one which gave the greatest increase in child benefit to all families across the country. Unfortunately, at this time of difficulty, it is necessary to take a €16 reduction or thereabouts in child benefit and there is no other option but to do that-----

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