Enda Kenny (Mayo, Fine Gael)

Will the Government have to recapitalise Anglo Irish Bank by some €6 billion in the spring? Has the Government considered the comment made by the Governor of the Central Bank that there should be an inquiry into the reasons for the failure of the banking system? Has it considered the fact that legislation will have to be introduced to give effect to such an enquiry? In that context, has it given consideration to the consequences of the Supreme Court decision on the Abbeylara case a number of years ago?

I wish to raise a matter relevant to a decision taken in the budget, namely, the reduction in excise duties. It was welcomed by the sector but the measure does not seem to have been thought through in the context of wholesalers who have purchased substantial amounts of spirits and so on and will now find themselves in a desperate situation whereby they are expected to take the hit as a consequence of the reduction in excise duty. I remind the Taoiseach that when a similar situation arose in the 1980s, when there were none of the digital communications systems we have now, off-licences and wholesalers brought their stock to bonded warehouse where it was re-issued at the lower rate. I know there is a meeting today with the Minister of State, Deputy Kelleher, about this issue.

I have first hand evidence that there will be a substantial number of job losses if some mechanism to give a rebate on the duty paid cannot be given to the wholesalers concerned. Some people have been caught for €50,000, €300,000 and, in one case, up to €1 million. There is evidence the Revenue Commissioners have written to at least one of the people concerned stating a mechanism would be put in place for a rebate of the duty involved. It is a matter which the Government should immediately address because the money is due to be paid very shortly and many people will not be able to continue in business if they have to take a hit of that order. The decision to reduce excise duty may not have been fully thought through. It is an issue which deserves the Taoiseach's attention before he leaves for Copenhagen.

See this speech in context