Dara Calleary (Mayo, Fianna Fail)

This Government's refusal to do anything about it, however, on the basis that the last Government did not do anything about it is not a justifiable explanation. I noticed another explanation given by the Minister yesterday, namely, that it was not proper to take the budget apart so early into its term. The Minister is right. I hope the Minister for Social Protection was listening to him when he said that.

This charge is driving very many costs. The current level of fuel rates in our domestic economy is driving costs for small business and for haulage, which goes directly back to those who were championing exports and their ability to get us out of the current situation. It is driving costs for families, in particular those who have to commute long distances every day to their houses, from Dublin right up the east coast and throughout the midlands. As we noted, our domestic economy is not improving. There is fantastic success on the export side of things and in research and development, but our domestic and retail economy and the ability of people to actually spend money is not improving, no matter what we do. There has been relief in some areas but overall retail sales continue to decline. One of the initiatives, or marks, of implementing this legislation would be to drive some element of confidence into that economy to release some money back into the retail economy, thereby increasing VAT receipts for the Minister and going partially towards the cost of the measure.

Presumably the Minister has based his excise tax projection on a certain level of where fuel costs were estimated to be at some stage during the year. In everybody's estimation fuel prices are currently far beyond anywhere anybody could have forecast, especially for petrol. Surely the excise excess the Minister is making from the increase in fuel prices should be taken back. That would be another way to go towards paying for the costs the Minister claimed we had not identified.

There is talk of a review group. I reiterate that this issue has been around for years and it is time we finally faced up to it. Fuel has been and remains one of the old reliables. Although there is an argument to be made for a tax on tobacco in terms of health, there is no argument in this case. There is also a growing issue in terms of laundered and illegal fuel coming across the Border. Pressure is put on local authorities who must maintain and clean up areas. I read that Monaghan County Council has to budget €1 million for cleaning sludge from roadsides and fields because of laundered fuel that is coming from the other side of the Border - or even under it - as a direct response to the current very high cost of legitimate fuel in this State. Laundered fuel, its impact on the economy and smuggling in general are issues we must discuss further in this Chamber. However, we have the ability to do something about the current level. If we could do that and take it on, we would immediately cut the legs from under those who sell laundered fuel into this economy, thereby increasing tax revenues again.

Rather than have the usual scenario of people saying, "No, we're not doing this", people should think outside the box. Given where our domestic economy is at, that is what is required. The old way of doing things is not going to happen. This would be a good way to start.

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