Michael Noonan (Limerick City, Fine Gael)

For the majority of the past 20 years the VAT differential between the Republic and Northern Ireland has been 3.5% and it was as high as 6.5% as recently as 2009. After the increase I am announcing, the differential will not be 3.5%, it will be 3%. On this basis, I do not expect any increase in cross-Border shopping as a result of the VAT increase.

Some opponents of the VAT change - experts in mental arithmetic - claim that the increase will cost households €500 per annum on average. I am informed that this calculation is incorrect, as they have not taken into account the fact that business contributes significantly-----

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