Ciarán Cannon (Galway East, Fine Gael) | Oireachtas source

The Deputy is aware that the rather unusual and varying applications of VAT that applied in member states when they joined the European Union were allowed to remain in place. In essence, that has led to the development of some anomalies. The difficulty is that the VAT directive which applies does not allow for such anomalies to be removed. I wholeheartedly agree with the Deputy that the industry needs any support we can make available to it. The only option available to us in that regard was to extend excise duty support to hauliers and those involved in passenger transport services. We have done this and it was sought by the coach and tourism operators. The Government had given a commitment to support them by using the only taxation facility available to do so. It will cost the State €70 million in a full year. That is a serious commitment on the part of the State and the Government to a sector that deserves our support and will play a part in the country's future recovery.

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