Fiona O'Malley (Dún Laoghaire, Progressive Democrats)
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I am grateful for the opportunity to speak on this matter. I am aware the Finance Bill was passed yesterday. Considering what measures can be taken for the next budget is good planning.

The Chancellor of the Exchequer in Britain reduced the rate of VAT on condoms to 5%. Given the incidence and growth of sexually transmitted infections we must consider preventative measures. Condoms prevent sexually transmitted infections as well as acting as contraceptives. They are also an important weapon in the fight against HIV and AIDS. With VAT rates of21%, Ireland has the most expensive condoms in Europe. Given the nature of sexual activity, we must remember that young people may not be able to afford condoms.

We should also reflect on prevention of pregnancies as we all deal with the results of pregnancies, particularly those that are unwanted. It is always better to invest in prevention rather than cure. The tax that would be foregone by zero rating condoms would not be considerable given the impact it could have on the health of the nation. The statistics for sexually transmitted infection have been rising at an alarming rate in recent years. We must take strong action on preventative measures and making condoms much cheaper by reducing VAT on them would be one way of doing this. We have much to learn from the British example on this and as we look forward to the next budget I hope the Minister will consider zero rating condoms given the important place they have in the prevention and control of sexually transmitted diseases and unwanted pregnancies.

Seán Power (Kildare South, Fianna Fail)
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I thank the Deputy for raising this important issue. The use of condoms is one of the simplest and most effective ways to guard against both unplanned pregnancy and the transmission of infection. I encourage sexually active people to continue to act responsibly in this regard. I am aware also of the decision announced recently by the British Chancellor of the Exchequer to reduce the rate of VAT on condoms and other contraceptives from 17.5% to 5% and that this has been welcomed by groups working in the field of sexual health.

The Government established the Crisis Pregnancy Agency in 2001 to address the issue of crisis pregnancy. Its remit includes the objective of seeking to reduce the number of crisis pregnancies by the provision of education, advice and contraceptive services. I am aware that the agency wrote to the Minister for Finance in August 2003 proposing a reduction in the VAT rate on condoms from 21% to 13%. The agency noted that consistent and proper use of contraceptives can help prevent crisis pregnancy, and condoms also afford protection against sexually transmitted infections. It also indicated that clinical trials have shown that correct and consistent use of condoms can lead to 95% to 98% contraceptive efficacy rates. Condoms are widely available from a variety of outlets nationwide without prescription. The Deputy will appreciate that the question of reducing the rate of VAT on condoms is one for the Minister for Finance in the first place and the Minister for Health and Children has no direct role in the matter.