Dáil debates

Tuesday, 5 February 2019

Saincheisteanna Tráthúla - Topical Issue Debate

VAT Rate Application

6:40 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael) | Oireachtas source

What we are talking about is the EU food supplement directive which defines clearly the foodstuffs sold in Ireland that are regulated by the Food Safety Authority. Tens of thousands of people consume these products weekly. The directive defines foodstuffs as those products "the purpose of which is to supplement the normal diet and which are concentrated sources of nutrients or other substances with a nutritional or physiological effect, alone or in combination, marketed in dose form" and so on.

Let us consider what is happening in England. In 2016 the actual amount of food supplements sold in the United Kingdom was almost €700 million. It is estimated that one person in every three in the United Kingdom takes a food supplement weekly. In Ireland the sector is worth approximately €60 million per year. The Minister of State can correct me on the matter, if necessary. Tens of thousands of people take supplements.

Many people have come to my office recently. In many cases they are older people, people on pensions or who are in reasonably good health but who are concerned. In many cases they believe, or their doctors or chemists will say, additives such as glucose for joint health, probiotics to help the digestive system or fish oil for good health are useful and beneficial. They believe the proposal by Revenue to increase taxes on all of these products from 1 March by 23% is an imposition that is unacceptable, given their income and health needs. The people who come to me are elderly or have limited income. They are concerned that they will be unable to take the supplement they have been taking for the past ten, 15 or 20 years. That is at the core of the problem.

I do not have the figures, but I am told that the tax take proposed could be approximately €8 million per annum. That may be what the taxpayer will get out of it. However, it will have the effect of discommoding elderly people, women who are pregnant and parents with young children and it is not good enough for them. I have read the Food Safety Authority advice on vitamins and supplements and what the authority states is clear. I am not going to second-guess it on medical advice. Nevertheless, it is of crucial importance that the existing arrangements continue.

I have been advised that if there is a hard Brexit, these products will increase in cost and be more difficult to obtain. That will drive more and more people towards the online business. People buying online from such places as Guernsey in the Channel Islands will be buying products that are unregulated, of unknown composition and with unknown health affects. There are no ethics involved in an online sale of these products, whereas in the sector in Ireland which employs over 1,800 people nationally, there is a code of ethics. It is entirely acceptable for a person to go from his or her doctor to his or her health food shop to buy the nutrient supplement that will be of benefit to him or her. It is entirely unacceptable that we will drive the people concerned into an unregulated market to buy products, especially if they do not know what they will be consuming. It is important for the Minister for Finance to consult business and other interest groups, as well as health bodies, and report back to the Dáil.

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