Séamus Kirk (Louth, Fianna Fail)

I am glad to have this opportunity to utter a few brief sentences on this matter. I commend my party colleague, Deputy Niall Collins, for bringing forward this motion, which is timely and important.

In recent weeks and months Members of this House have been talking about the relative buoyancy of the export sector in Ireland and the flatness in the domestic economy. That is what this debate is about. It is about the businesses whose statistics the Minister of State quoted a moment ago. Those figures graphically illustrated the employment potential in the domestic economy where the businesses which are paying commercial rates to the various local authorities play such a vital role. The reality is that high business costs equate with reduced employment opportunities or a combination of premium loading on business products. We need to establish a planned and systematic approach to revitalising the sector. An examination of commercial rates will be an integral part of that process. If the Government is willing to establish a clear policy position, there will be opportunities for job creation. Given that nearly 500,000 people are unemployed, addressing this issue is urgent.

In recent weeks, the suggestion that the rate of VAT will increase by 2% has sent a shudder through the business sector of my constituency of Louth. One can only imagine the increase's impact on the range of businesses in County Louth and the north east as a whole. I remember the vision of cars streaming northwards in tailbacks lasting miles and waiting to get into supermarkets in Newry and further afield in the North. Not for a moment am I denigrating those who travelled North, but the trading equilibrium will clearly be affected if the suggested provision is implemented. Combined with this is our position on rates, whereby the valuation system is inflexible and does not take account of the challenges that face businesses from time to time. We need to consider the UK model, in which economic circumstances can be factored into the calculation and businesses can be tided over during difficult economic periods.

I am happy to have had an opportunity to contribute to this debate and I hope the Minister of State, Deputy Perry, who knows much about the business sector, will take account of the valid and constructive points made by the Opposition and convey them to the Minister and the Department with direct responsibility for this matter.

See this speech in context