Michael Noonan (Limerick City, Fine Gael)

I am setting out a general position. The Deputies know why it is important that we review how effective the VAT reduction is and whether it is delivering on jobs. I thought, where we started a while ago with Deputy Michael McGrath's amendment, that it was something along those lines he was looking for, that every two months we would assess whether it was effective in terms of job creation. Now the wheel seems to have spun around where a review in two years' time is not acceptable to the Opposition but it wants reviews every two months. That is not really logical either. One could talk oneself in all directions with that.

We are saying it will be reviewed to encourage the industry to use the VAT reduction effectively so jobs are created and there will be more activity in the industry. That, if one likes, is an encouragement hanging over the tourism industry.

We are also saying, and it is written into the Bill, that the pension levy will continue for four years. I hope we can continue the VAT reduction for the same period but there are no circumstances, if I am Minister for Finance, in which the pension levy will continue beyond four years and if we are to continue the VAT reduction beyond the life of the pension levy, we must find another means of funding it. Everybody is familiar with the fiscal constraints and I am simply saying we will have to look at the matters in due course. Obviously, if the tourism industry takes off and the VAT reduction can be shown as one of the main levers that really drove it forward, then I would be very reluctant to bring it back up. That is the position.

We are really talking forward and much of what we are saying is speculation. I am trying to give Deputies the fullest information possible. It is difficult to see forward at present. It is difficult to see from here to January next. We have a programme that we will implement. In general terms, we have an economic approach that we will pursue but there are all sorts of strange things happening in the world.

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