Dáil debates

Thursday, 9 June 2011

Finance (No. 2) Bill 2011: Committee and Remaining Stages

 

12:00 pm

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)

Maybe we got off to a bad start on Committee Stage. With respect, I am not making any allegations against the Minister or the Government and I ask him to clarify what he means by that statement.

We are seeking information and I acknowledge he is imparting information here in a genuine and open way. However, it was he who stated that the purpose of the review was not to ascertain how many jobs were being created because that is the amendment we were discussing but that we may not be able to fund such a reduction. I am asking is that the case because this is a different approach to what was announced in the jobs initiative and this legislation gives effect to the measures announced in that initiative, and the question still stands. The Minister stated the review is built in to the reduction of VAT rates to ensure the sector was delivering. In a genuine way without making any accusations, I am asking him to clarify whether the purpose of the review is to see if the sector is delivering or, as the Minister stated earlier, that it may be that we cannot afford such a reduction in the periods after the review. If the latter is the case, if there is a potential that we would suspend or reverse the decision to reduce the VAT rate, which costs €350 million per year in a full year, at the same time as continuing this levy, it is simply wrong and it is pushing through legislation under false pretences. Today the Minister gave the information that may be the case and I am giving the Minister an opportunity to clarify if, as he stated earlier, that potential exists.

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