Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

This is all about clarity. This issue has been dragging on for some time and the industry is entitled to the clarity it is seeking. In reply to a parliamentary question the Minister informed me that an expert report was received by Revenue more than a year ago and that he had looked at options prior to this budget and decided not to do anything legislatively. The industry tells us it is taking a pragmatic view, supporting the proposal by Revenue and the Department of Finance to introduce a reduced rate of VAT across the board. On the other hand, there are those who say the Department and Revenue are muddled and spinning and a zero rate of VAT is the only fair conclusion.

The industry is saying that any VAT rate needs to be lower than the first reduced rate of 13.5%. This would help secure the industry 's support and avoid a consumer backlash. However, the clear message I have received from the industry is that the introduction of VAT would be more beneficial than the status quo and the ongoing disputes. It is also concerned that Revenue could move to a VAT rate of 23% on all products, which would meet with strong opposition from consumers and industry alike.

There is a need for clarity. I do not understand why this is taking so long. We have the expert report, which has not been published. As part of the deliberative process, the report is exempt from freedom of information requests. We need to hear from the Minister when a decision will be made on this issue. When will there be clarity? Surely to God it cannot take much longer to come up with a proposal.

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