Dessie Ellis (Dublin North West, Sinn Fein)

I will do my best. I am baffled by the Tánaiste's approach. Not that long ago a 9% VAT rate was introduced to help restaurants and the tourism industry. The Tánaiste has stated this rate has worked. By and large, the industry has improved and more people are eating in restaurants. In that light, I cannot understand why we would add 2% to the VAT rate, given that it will hit people who use such facilities, as well as those seeking to purchase white goods, televisions, cars and so forth. The increase will affect people's spending power, particularly during the January sales when they expect to find bargains.

It is a question of choice. Applying a 1% wealth tax would create more change and collect more money. Under the Government's resolution, the only people who will not be short of money will be those who have it. The least well-off will suffer.

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