Peadar Tóibín (Meath West, Sinn Fein)

Ba mhaith liom freisin comhghairdeas a gabháil don Aire mar gheall ar a phost nua. Is mór an dúshlán é agus tá súil agam go n-éireoidh leis.

I refer to the Border region. The population of the six counties to the south of the Border is half a million people while approximately 800,000 people live in the five counties just north of the Border. This is a total of 1.3 million people, a not insignificant number comprising roughly 21% of the total population of the island. Due to partition, this region has become a zone of economic uncertainty. We all currently live in a zone of economic uncertainty called Ireland but the people living in these specific areas have to deal with further uncertainties. Over time there will be swings with regard to taxation and the Minister in his reply alluded to swings with regard to currencies and inflation. In the past, one side of the Border had become a boom area and had unfair competitive advantages while the other side of the Border has become a ghost area.

Last January the English Government increased the VAT rate from 17% to 20%. If we had maintained our commitment to a 21% VAT rate, we would have near VAT harmonisation on the island of Ireland. The decision to increase the VAT rate will be detrimental to the Border economies and it will result in real outflows of shoppers, retail trades and funds across the Border. The effect will be felt in the Border counties and also down as far as County Meath and Dublin. Has the Minister the figures for the potential loss of revenue resulting from increasing the VAT rate? How many jobs will be lost as a result of this initiative?

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