Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

If we carry out a review we will flush out that issue. The price differential is not solely explained by VAT. Products are marketed in a way that shows a range up to 5.5 for footwear, but beyond that the range differs and a completely different price model is used. That is the reality. VAT is part of the price differential because the simple truth is that clothing and footwear sizes appropriate to an average ten year old are VAT exempt and zero rated. Beyond that, the rate is 23%. It is a hefty increase and, as I said, a burden on parents and families.

The Minister of State is putting the onus on the industry, but there is no incentive for it to ask Revenue for a review and-or to suggest the thresholds need to be raised. I would like the Department and Revenue to take the initiative and undertake a review. The Minister of State needs to examine the files from 1984 - the organisations have probably changed since – and find out who Revenue engaged with at that time and how it arrived at these thresholds.

The evidence is clear. I am asking for a review and not for Revenue and the Department to wait for others to come to them because I do not think that is going to happen. I do not think there is a commercial incentive for the industry to do so. It is taking advantage of the situation and will not seek to change it.

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