Timmy Dooley (Clare, Fianna Fail)

I welcome the Minister's clarity on this issue. However, his colleague, the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, stated on 25 January in reply to a question from my colleague, Deputy Willie O'Dea, that the number of people working in the tourism sector had as a result of the VAT reduction increased by 6,000 and, therefore, the initiative was working.

The Minister's response is in line with that which he gave in an ad hoc questions and answers session to the Irish Hotels Federation when he advised it that seeking an extension of the lower rate of VAT just because the industry was struggling was not a strong enough case. The Minister stated that it was necessary to show that jobs were being created and followed this up by saying that he was not sure this was the case in terms of the VAT reduction. Like others, I believe it is difficult to indicate if an increase or reduction in VAT would have the impact expected. Therefore, I welcome the figures outlined by the Minister in his reply. There appears to be a bit of spinning, although on behalf of the Minister's colleague, Deputy Bruton, rather than by him.

The Minister appeared to indicate that the VAT reduction might not remain in place for 2013. He will recall that it was factored in for 2013 in the jobs initiative. The raid by Government on the private pension fund of €450 million per year is also factored in for 2013. Is it the Minister's expectation that if the VAT reduction does not remain in place for 2013 the Government will not be raiding the private pension fund to the extent projected?

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