Lucinda Creighton (Dublin South East, Independent) | Oireachtas source

I lend my voice to the sentiments that have been expressed by pretty much everybody who has taken the floor to date. We must appreciate that there are significant constraints on the Government in terms of what can be delivered upon in this budget, and I am conscious that credible, effective and immediate revenue-raising measures must be introduced. Having said that, I must point out that most people have welcomed the retention of the 9% VAT rate for the hospitality sector as a significant, important and positive decision taken by the Government in setting out the draft budget today. I suppose the contradiction is that this measure will hit that sector significantly, particularly the pubs, as mentioned by Deputy Timmins and others, but also restaurants and hotels - all the licensed premises that we are trying to support and to which we are trying to provide some stimulation through the VAT measure. I see a slight contradiction in this approach.

It is clear that a lid levy would raise a greater sum of revenue for the Exchequer. Potentially, it would ease the pressure on the other measures that have had to be taken, which I will not list, as we will have plenty of opportunity to do so over the next 24 hours. It would make sense to go back and review the potential of such a measure, both from a revenue-raising perspective - because the revenue that can be raised is greater than what is proposed through this 10 cent increase in excise on alcohol - and from the perspective of public policy. When one is constrained by what one can do through budgetary measures, one can prioritise public policy and the public interest, and health must be factored into that. There is an opportunity here to do something that is substantially and credibly in the interest of supporting health policy in this country by tackling binge-drinking and the scourge that is alcoholism in this country.

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