Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

If I recall correctly, we had much the same discussion this time last year. I will not go into the details, but I will mention the action plan for the future of VAT in the European Union. In January the European Commission published a proposal for the reform of VAT. The outcome of any discussion on the VAT rating proposal and the eventual adoption of the proposed legislation will clarify and establish the full scope available to Ministers and member states to alter the VAT rating of goods and services. However, other than an initial discussion at Council working party level in March, the VAT rating proposal has not been tabled for discussion by the last two Presidents. No reform of VAT rates can be based on the proposal until it is agreed to by Finance Ministers within the European Union. We all know that there are anomalies and peculiarities within VAT rates and structures. VRT on rescue vehicles falls into the same category. Until the discussions are concluded at European level we will not be able to consider the matter. It will also depend on the outcome of the discussions.

Deputy Michael McGrath was correct to say the analysis was carried out by Revenue of the average size of children. It seems there has been very little change in average size since the last time such an investigation was carried out in the 1980s. There has been a very little push from any part of the clothing and footwear sector on the issue, although I accept that there are anomalies. I have heard Deputy Pearse Doherty talk about how his son wears a size 10 shoe. When I was 20 years old I wore a size 8 shoe and my feet have not grown since. There are peculiarities. Sometimes people end up going to appalling expense if their children are larger than average.

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