John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

Of the 39,000 jobs created, more than 19,000 were created in the domestic economy. On the issue of purchasing power, consumers have benefited from greater value for money in the retail trade, which has become extraordinarily competitive. Expenditure on shopping has declined significantly, although I recognise that people have limited budgets.

Deputy Wallace raised the issue of rates. Ultimately, a company's customers will pay the rates as they are built into a business's stacked up costs. Rates have been in place for decades and are factored in when calculating one's profit margin. Current rates are based on 1986 property values. People have been advised to appeal or seek a review of decisions on rates. The information provided to us yesterday indicates there should not be any substantial increases in rates. Businesses also have available to them a mechanism for reviewing decisions.

On the issue of banking, we have a State-owned bank and two pillar banks which are committed to lending €8 billion that has been ring-fenced by the Government for that purpose. Securing funding from banks is not the only issue. Many retailers are collaborating with their suppliers and availing of alternative mechanisms. I meet many young people who are starting businesses. The issues they face are not only securing loans, but also developing a business plan and company profile. While one can blame the banks, lending is a two way street. If a loan application is viable and stacks up, it makes good sense for a bank to approve it because banks are in the business of lending money. They want customers to grow on the basis that they must satisfy their shareholders. The domestic banks need business.

We are encouraged by The Gathering. Those who visit Dublin at weekends will see no sign of recession in the capital. One will see confidence in city centre businesses, especially restaurants. The new VAT rate has been of great help in that regard.

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