John Perry (Sligo-North Leitrim, Fine Gael)

The Government is opposing the Motorist Emergency Relief Bill 2012 sponsored by Deputy Dooley to provide for quarterly reviews of excise duty and the immediate reduction of 4 cent in excise duties on petrol and auto-diesel. In the context of our current budgetary situation, there is no scope to reduce the levels of excise duties at this time without providing for alternative revenue raising measures. Such a measure would cost the Exchequer €178 million in a full year when VAT is taken into account. The loss of this Revenue would have a negative impact on the performance of our public finances, which is vital to our economic well-being and to our exiting the EU-IMF programme.

Ireland has been running large public finance deficits since 2008, significantly driving up the country's debt level.

This is the backdrop framing our budgetary policy. We cannot consistently spend more than we collect in revenue each year. It is not sustainable. Conversely, we cannot reduce taxes or excises without introducing additional taxes or charges in other areas to replace the tax forgone. The Government is determined to correct the public finances, enhance economic growth prospects and create jobs. Contrary to Deputy McGuinness's remarks, the Government has a clear understanding of and concern and respect for business people. Had he the courtesy to await my reply, he would have been given the facts. The difficulties we are dealing with are the legacy of the previous Government, which bankrupted the country. That is the fact. The Minister for Finance, Deputy Noonan, was highly critical of Fianna Fáil's arrogance and economic legacy, the latter of which has forced business people to reduce job numbers. This point should be made clearly.

This Government is concerned with creating jobs and putting the country back on the road to recovery. It is not an easy task, despite the assertions by Deputies to whom I listened with agitation because of their memory loss. Their track record is one of arrogantly dominating and disrespecting small companies. Our public finances are stabilising. Figures released by EUROSTAT yesterday showed our underlying deficit in 2011 was at 9.4% of GDP and we were on the right trajectory towards meeting our 8.6% target in 2012 and correcting our excessive deficit by 2015. We are committed to this. To that end, a stable tax base is essential.

Notwithstanding this, a sizeable deficit in our public finances remains. This year, the limit placed on the general government deficit is 8.6% of GDP. At budget time, it was estimated that such a limit equated to a difference of almost €13.75 billion between revenues and expenditure. It is important that we deal with this deficit. Clearly, €13.75 billion is an elevated level and requires further corrective action.

Deputy Dooley raised a point about my statement last week. To correct the record, during a Topical Issue debate Deputy Naughten cited a net gain of €64 million as a result of VAT increases. Although I seemed to acknowledge his point, there was no fact to support that figure. According to Deputy Dooley, I stated that €1 million would accrue from the increase, but Deputy Naughten raised the issue, not I.

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