Joan Burton (Dublin West, Labour)

The first part of section 57 deals with the exemption from VAT of public postal services provided as part of the universal service set out in the EU postal directives. It extends this both to An Post and any other designated provider of that service. I presume this means postage stamps will remain free of VAT, in addition to postal services, be they the traditional services provided by An Post or those provided by new providers that may be competing in the deregulated market.

As we come to the end of the life of the 30th Dáil, it is appropriate to state on the record that very many postal workers, bus drivers and other drivers in various public services did a lot to help those who would otherwise have been very isolated and alone during the recent cold spell. In the rush to deregulate postal services and amend or lose the universal postal service, this assistance should be noted. In a country like Ireland, which has a large number of roads and some very isolated housing, the services of postmen and postwomen are really valued. Their services comprise an important part of the fabric of the State, particularly in rural areas.

Now that there are many changes and a collapse in banking, it may well be that instead of having large numbers of banks in Ireland, particularly in smaller towns and some villages, there will be but one large Irish bank. A bank comprises a very important part of community services, particularly for those in isolated areas and those on low incomes.

I welcome the confirmation that cultural services are to remain exempt from VAT. I am sure the Minister of State must have been influential in that regard. The exemption is to apply to charges such as those to enter museums and stately homes. It is helpful that there is confirmation in this regard. The measure helps to keep prices competitive, both for the Irish and tourists from abroad. Last year, following an EU court case, local authorities had to charge VAT on services provided. I welcome the recognition of organisations such as museums. It allows them to continue to apply the VAT exemption to their services.

See this speech in context