Pearse Doherty (Donegal South West, Sinn Fein)

One cannot squeeze any more blood from the stone; it is dry.

The VAT rate rise announced today is a mistake. The Minister knows this because it is the argument he made in opposition. This is not to mention the impact the VAT rate rise will have on already struggling Border towns, including in my home county of Donegal. Increasing VAT in the hope it will generate enough cash to reduce the deficit is absolute nonsense. By its nature, it will have a diminishing effect on returns as people spend less. We can already see this happening as VAT returns have collapsed this year. What the Government is doing is attempting to run just to stand still.

I listened to Fianna Fáil speak about the unjustifiable nature of increasing VAT, but let us be clear: the only difference between Fianna Fáil's VAT plans and those of the Government is 12 months. Fianna Fáil also saw VAT as an easy option. It also drove hard-pressed retailers in Border counties to the wall. It pushed up the cost of living for ordinary people and is no more interested in saving jobs than the Government.

See this speech in context