Eamon Gilmore (Dún Laoghaire, Labour)
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I move:

(1)THAT the rate of value-added tax on the supply of certain goods and services at present chargeable at the rate of 21 per cent be increased to 23 per cent of the amount on which tax is chargeable in relation to the supply of such goods and services, and that, accordingly, the Value-Added Tax Consolidation Act 2010 (No. 31 of 2010) be amended in subsection (1)(a) of section 46 by substituting "23 per cent" for "21 per cent".

(2)THAT this Resolution shall have effect as on and from 1 January 2012.

(3)IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).

This resolution provides for an increase in the standard rate of VAT from 21% to 23%, with effect from 1 January 2012. The change will apply to all goods and services which are currently subject to the VAT rate of 21%, for example, cars, petrol and auto-diesel, electrical equipment and CD/DVDs, alcohol, cigarettes and tobacco, telecommunications, furniture, cosmetics and adult clothing and footwear. Approximately 51% of all goods and services are subject to the standard VAT rate.

The increase in the VAT rate is estimated to raise €67 million in a full year. It will have a 0.67% impact on the consumer price index if the increase is passed on in full to the consumer. This VAT increase will have no impact on the goods and services subject to the other VAT rates in the Irish VAT structure. In this regard, there will be no change to the zero rate of VAT, which applies to a range of goods and services, including most food, children's clothes and footwear and oral medicines. There will also be no change to the 13.5% VAT rate which applies to new houses, electricity, gas and home heating fuels, or to the 9% VAT rate which applies until 31 December 2013 to restaurant and catering services, hotel and holiday accommodation, certain entertainment services, sporting facilities, certain printed matter and hairdressing.

Willie O'Dea (Limerick City, Fianna Fail)
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It is strange, to say the least, that a Labour Party Minister was sent in here yesterday to do all the heavy lifting and that the most unpopular of the financial resolutions is also being advocated tonight by a Labour Party Minister. Everyone who has commented on this measure has condemned it in the most trenchant terms possible and Fianna Fáil opposes it absolutely.

I heard the Minister for Finance congratulate himself today on the fact that he was moving towards taxes on consumption, presumably rather than increasing income tax. It is not a question of either-or. We produced a set of proposals that would give the same revenue, without either increasing the top rates of income tax or VAT. Conventional wisdom is that taxes on consumption are less detrimental to employment than increases in income taxes. I agree. However, each case depends on the circumstances. If we look at the circumstances surrounding the Irish economy currently, we quickly appreciate why this proposal is insane. For the 44th successive month in a row, retail sales have fallen. We need to boost the domestic economy. Exports are beginning to falter. If we look at the falling Irish trade balance, we see that export growth is faltering badly. There has never been a time in our history where there has been a greater need - with 450,000 people unemployed and 100 a day emigrating - to stimulate the domestic economy. In these circumstances, an increase in the standard rate of VAT is the last thing this economy needs.

Not only is this proposal economically illiterate, it is also regressive. We have the most progressive income tax system in the civilised world. Value added tax is, by definition, regressive. People who do not have a taxable income cannot avoid having to pay VAT. The poorer a person is, the greater the proportion of his or her income to be paid on VAT. Many wealthier people do not spend their entire income. Therefore, not only is the proposal economically illiterate, it is socially regressive. It has been stated that the items covered by the 21% rate are such things as furniture, white goods, etc. People who do not have a taxable income - the poor - also need refrigerators. I suppose they could get by without television sets, but they should not be expected to in this day and age. Representatives from the Society of St. Vincent de Paul said today that last year they spent millions on helping people purchase furniture which they otherwise could not afford. All of these goods fall into the 21% VAT category. I find it ironic that these items will now be taxable at 23%, whereas value added tax on items such as caviar, smoked salmon and concert tickets is zero rated.

I was delighted today that RTE took the decision on the six o'clock news to highlight my colleague Deputy McGrath's exposure of the synthetic outrage of the Minister for Social Protection, Deputy Joan Burton, last year at the very notion of an increase in value added tax from 21% to 21.5%, but there was not a tittle out of her today when we are talking about a percentage increase four times that. Talk about raising hypocrisy to the level of a crusade.

Without much confidence of being successful, I ask the Tánaiste and the Government to think again about this proposal. I urge them to have a look at our document and see how they can raise the money without further depressing the domestic economy. The job of the Government in these perilous times is to lead us away from the cliff rather than towards it.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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This proposition is an outrage. It is predicated on the notion that it will create some €670 million in additional income for the Exchequer in a 12-month period. The Government has no hope of realising such figures. The Minister for Finance suggested there would not be an increased exodus across the Border. He used the word "stampede". It is time to wise up. Make no mistake about it, there will be an exodus of people across the Border, because everything being done in this budget directs them that way, both in terms of resolution No. 3, which brings additional excise duties on petrol and diesel, and in terms of this one. People will cross the Border in ever-increasing numbers because the increase in VAT from 21% to 23% will be the final nail in the coffin of so many businesses, not only along the Border, but in counties south of the Border. The Government is going to close businesses that are just hanging on and no more at this time. These are businesses where the footfall has already dropped dramatically and where staff have already had to be let go. The Government is driving that final nail into the coffin. Not only is this proposal a further blow to the State's economy, the impact it will have on local and regional economies along the 12 counties just south of the Border will be significant.

I have a vain hope this Government might withdraw this proposition. If it does not and if it forces it through, due to the weight of its numbers here, that will be a shame and a disgrace and the Government will reap its just reward for it, because it is ill-thought out and anti-business and the Border counties. It will even have an impact further south.

Michael Kitt (Galway East, Fianna Fail)
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I ask Deputies to be brief as there are a number of Deputies who wish to contribute.

John Halligan (Waterford, Independent)
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Last year, nearly 1,300 small and medium businesses went into insolvency. Many of these would tell us this was partly due to high rates, high rent and the downturn in the economy, but it was primarily due to the lack of spending power in the economy. Some 150,000 jobs were lost, with thousands more on the verge. Chambers of commerce and small businesses throughout the country would tell anybody who speaks to them that they are on the edge. I know of one small business run by a husband and wife who work 60 to 70 hours a week and come home with just €700 to €800 between the two of them. They cannot take a further increase in VAT without going over the edge. The Government will find after Christmas that many businesses will go over the edge.

What this says to people and small businesses, is that besides not doing anything for them with regard to rates or upward-only rent reviews, we are now going to force them to increase the cost of their products. This will mean that people will spend less. The statistics are there for the Government to see and the Tánaiste should check them out. Some 1,300 businesses have gone into insolvency and another 1,000 are hanging on by a thread. They cannot afford the smallest of increases at this stage. We talk about helping and supporting small businesses. If we walk through any town or city, we see the number of shops and small businesses that have closed down. They have closed for the reasons I have given: rates and rent, but primarily the lack of spending power in the economy. The cuts introduced in this budget will restrict spending and the VAT increase will restrict it even further. The Government can rest assured that by making this change, it will drive more small businesses under and drive more people onto unemployment benefit.

Seán Fleming (Laois-Offaly, Fianna Fail)
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I urge the Tánaiste to reconsider this measure. Many of the points have been made by those who have spoken so far. It is very disturbing that we are introducing a 2% VAT increase. The Tánaiste said it will generate €650 million in a full year and €560 million in the coming year. VAT is paid after a two-month period, so there will be ten months of receipts in 2012.

The figures included in the budget are inaccurate because for the first time ever, they have taken no account of the impact this VAT increase will have on business. The Government has taken the figure from VAT receipts and added the 2% on to that. Adding the 2% will cause a reduction in sales and in activity and will lead to a reduction in the VAT take. This will be very severe in the Border area. Our party leader, Deputy Martin, visited a number of businesses in the Border area which are alarmed by the prospect of this.

If the Government could have brought it in before Christmas, it would have done so, but as it is being brought in from 1 January 2012, it has actually cancelled the January sales. Who will go to the January sales if VAT is increasing on 1 January? I accept that because VAT will increase from 1 January, it will probably help sales in the run up to Christmas because people will want to buy before the VAT increase comes in.

The best trading period for many businesses is the December-January one but VAT will be increased in the middle of it on 1 January which will hammer the sales. I do not know how retailers will survive this attack on their January trade. They need that trade because February and March are normally lean months in business. To hit them early in the year will be very severe and will cause untold difficulties and loss of jobs.

The areas affected include cars, confectionary, detergents, diesel, to which we have already applied a carbon tax, petrol, furniture, fittings, fridges and washing machines. People need those items. One of the elements about which I am most concerned is children's toys, which are being taxed. This Government would have taxed Santa Claus this Christmas if had been able to do so.

Mattie McGrath (Tipperary South, Independent)
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It has killed him off.

Seán Fleming (Laois-Offaly, Fianna Fail)
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I would say to the parents of the children of Ireland, as it is past their bedtime, to assure them that despite the best efforts of this Government to tax Santa Claus and Christmas toys, it has failed to do so. Santa Claus has received all the letters, his bags are packed, the sleigh is ready and he is on his way from the North Pole and the toys will arrive without the extra VAT this year. The bad news for those children is that next year will be very difficult because this Government has decided to tax Santa Claus next year. It did not get to do so this year because he is on his way. To tax children's toys is a mean act and it says it all about this Government.

Michael Kitt (Galway East, Fianna Fail)
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I ask for brevity.

Brian Stanley (Laois-Offaly, Sinn Fein)
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I appeal to the Tánaiste to row back on this decision because it will have a disproportionate impact on low income families. It is a flat tax. The Government is putting it forward as if it will apply only to luxuries. Adult clothes and shoes, having a telephone in a rural area and basic household appliances are not luxuries.

It will also damage employment in small towns. Small towns are already dying. A business person told me that only €20 went through the till one day last week which did not even pay for the heating. That is what one faces in January. This will not generate more income but will damage those local economies. What will happen is that one will charge more but get less. Will the Government rethink this?

Michael Healy-Rae (Kerry South, Independent)
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I am very opposed to this measure as this massive hit of taxation will affect everybody, especially the poorest in our society. It is a retrograde step and will not ensure the Government receives up to €650 million extra in returns. I cannot see the logic behind it. The Government is crippling people who are already suffering badly.

I wish to highlight the fact that last year the Minister for lifestyle choice, or I mean the Minister for Social Protection, had one view on an increase in VAT but this year she has done a complete U-turn. She is quite happy to ensure the people will be hit with this draconian tax. When the United Kingdom reduced VAT, it resulted in greater economic activity. This is a wrong move.

Séamus Kirk (Louth, Fianna Fail)
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As a representative of a Border constituency, I rise to tell the Tánaiste that the implications of this proposal are very serious. Huge volumes of traffic from the towns in my constituency and along the Border will go northwards. We are quite familiar with the very adequate road infrastructure and travelling long distances to shop in Newry, Banbridge and further north is relatively easy for shoppers nowadays.

Commentators regularly say the domestic economy needs a lift. We need to generate more activity in the domestic economy. There is no doubt that the increase in the VAT rate will further depress the domestic economy south of the Border. People with diminished spending power after some of the measures introduced yesterday and today will chase value for money. Naturally, they will travel to Newry, Banbridge and perhaps Belfast and other areas. The difficulty we have is that the trading equilibrium in the Border counties blows hot or cold, depending on where the advantage for shopper lies.

It is not long since we saw the spectacle of miles of tailbacks of vehicles on the way to Newry. That was a loss to the trading sector south of the Border, including in County Louth. Inevitably, that has serious implications for the overall tax yield for the Exchequer and has clear implications for the number of people employed in the retail sector.

Given the profound implications of this proposal, I appeal to the Tánaiste to reconsider it. The figure of 2% is too great an increase and must be reconsidered immediately.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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There has been a lot of smoke and mirrors to try to deflect from the real meat of this budget. It is when we reach a proposal such as this that we see how completely retrograde and bankrupt this budget is. This is a make the poor poorer tax. There is no question about it. Loading this tax on things needed by people who have already been savaged with cuts and who barely have enough to keep going means they will buy less of them. That will make the poor poorer.

Along with everything else, there will be a lot more poorer people in this country. It makes a mockery of the suggestion that this budget is about jobs or that it is a priority of this Government to create jobs. This will result directly in the loss of jobs because the collapse in demand among low and middle income families is the reason small businesses throughout the country are hanging on for dear life. They cannot afford another hit and more businesses and small traders will go out of business and shed jobs.

Not only is it unjust, regressive and lead to job losses, it probably will not gain one penny for the Exchequer. That is the irony of it. It is likely that the Government will get nothing, or next to nothing, back from this because people will simply buy fewer goods and there will be no extra revenue for the State. It makes no sense.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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This new imposition on consumers is serious. The Government should be encouraging them to spend locally to support local economies. There is a grave danger that large volumes of trade will be lost to this jurisdiction. Traders and shopping centres in the Six Counties have already ratcheted up their advertising and promotion campaigns. As a representative of two Ulster counties, I want to state clearly traders in southern Border area are concerned about the threat to their businesses presented by this tax measure. They have invested heavily in developing new facilities in recent years and cannot afford to have their trade diminished further.

Michael Kitt (Galway East, Fianna Fail)
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Does the Tánaiste wish to reply? We are out of time.

Micheál Martin (Cork South Central, Fianna Fail)
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May we have a further five minutes? The other resolutions will be easier to deal with.

Michael Kitt (Galway East, Fianna Fail)
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I cannot allow it.

Dessie Ellis (Dublin North West, Sinn Fein)
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The Leas-Cheann Comhairle indicated-----

Micheál Martin (Cork South Central, Fianna Fail)
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The Chief Whip will not object. Please allow Members a further five minutes.

Timmy Dooley (Clare, Fianna Fail)
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If the Tánaiste gives us five minutes, we will return them to him on the next motion.

Michael Kitt (Galway East, Fianna Fail)
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I cannot accede to the Deputies' request. Unfortunately, the time afforded is limited. Many Deputies wish to contribute, but we must abide by the order.

Micheál Martin (Cork South Central, Fianna Fail)
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We have only had 20 minutes to discuss this resolution, although we agreed to half an hour.

Seán Fleming (Laois-Offaly, Fianna Fail)
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There are 30 minutes.

Timmy Dooley (Clare, Fianna Fail)
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Yes.

Michael Kitt (Galway East, Fianna Fail)
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The allocation of time motion was amended.

Micheál Martin (Cork South Central, Fianna Fail)
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On a point of order, we amended it again to read "30 minutes".

Seán Fleming (Laois-Offaly, Fianna Fail)
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That is included in the order.

Micheál Martin (Cork South Central, Fianna Fail)
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The Leas-Cheann Comhairle might not be aware of the amendment. During the last vote we agreed to spend 30 minutes discussing the VAT resolution and reduce the time allowed for the remaining resolutions. The Government Whip agreed to spend 15 minutes on the next resolution and allow an extra ten minutes to discuss this resolution, bringing the total time allowed to 30 minutes.

Michael Healy-Rae (Kerry South, Independent)
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It is an important issue.

Michael Kitt (Galway East, Fianna Fail)
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I am advised that there was no formal agreement.

Micheál Martin (Cork South Central, Fianna Fail)
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May we formally agree to it now?

Dessie Ellis (Dublin North West, Sinn Fein)
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It was a gentleman's agreement.

Timmy Dooley (Clare, Fianna Fail)
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Will the Tánaiste afford us ten minutes?

Michael Kitt (Galway East, Fianna Fail)
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Will the Tánaiste help me, please?

Eamon Gilmore (Dún Laoghaire, Labour)
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There is an ultimate time limit.

Micheál Martin (Cork South Central, Fianna Fail)
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That is fine.

Eamon Gilmore (Dún Laoghaire, Labour)
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Does the Opposition wish to take five minutes from the next-----

Timmy Dooley (Clare, Fianna Fail)
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We will take ten minutes.

Eamon Gilmore (Dún Laoghaire, Labour)
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Ten minutes from the time allowed for the next motion.

Michael Kitt (Galway East, Fianna Fail)
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There are only ten minutes in the next slot.

Micheál Martin (Cork South Central, Fianna Fail)
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We agreed to have a new slot. I do not know where the Chief Whip has gone, but everyone agreed to have a new slot.

Michael Kitt (Galway East, Fianna Fail)
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Yes, but the House did not agree. There was no formal arrangement. I would love to allow it.

Joe Higgins (Dublin West, Socialist Party)
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The Tánaiste can agree to it now. He is the member of the Government in the Chamber. He can give us ten minutes which can come off the time allowed for the next debate.

Micheál Martin (Cork South Central, Fianna Fail)
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The Tánaiste has no problem with the request made.

Pat Deering (Carlow-Kilkenny, Fine Gael)
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Five minutes have been used up already.

Eamon Gilmore (Dún Laoghaire, Labour)
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How much time are we adding?

Micheál Martin (Cork South Central, Fianna Fail)
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We will add ten minutes for the discussion on this motion and take five minutes from the time allowed for each of the next two motions.

Eamon Gilmore (Dún Laoghaire, Labour)
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That is fine.

Michael Kitt (Galway East, Fianna Fail)
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Deputy Higgins is next to speak. He must be brief and co-operative.

Joe Higgins (Dublin West, Socialist Party)
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Tá cáin breisluacha le cur in áirde go dtí 23%. Seo ceann des na polasaithe is measa ins an mbuiséad seo agus ceann des na hionsaithe is géire ins an mbuiséad in aghaidh ghnáth daoine. Cuireann cánacha indíreacha isteach go mórmhór ar dhaoine bochta agus ar lucht oibre atá ar phá íseal agus ar meán pá. Dá bhrí sin, tá sé mímhorálta, mícheart agus míchóir ó gach pointe.

Má tógtar €670 milliún i gcáin breisluacha, sin €670 milliún nach mbeidh ag dul isteach díreach ins na seirbhísí nó ins na siopaí agus, dá bhrí sin, a bheidh caillte don eacnamaíocht ghinearálta. Déanfaidh sé sin an-dhochar don pholasaí déine atá ar bun ag an Rialtas. Cad na thaobh nach n-éisteann an Rialtas leis an méid atá an Comhaontas Clé a rá, bunaithe ar fhigiúirí ón Phríomh-Oifig Staidrimh agus Credit Suisse, go bhfuil €219 bhilliún in achmhainní agus in airgead ag an 5% is saibhre sa tír agus tré cáin réadúil a chur ar an 5% sin go mbéadh €10 mbilliún againn an bhliain seo chugainn chun, mar shampla, postanna a chruthú, infheistíocht a dhéanamh i jabanna agus gan na ciorraithe agus na cánacha breise seo a chur i bhfeidhm?

Tá sé náireach go bhfuil an rogha mícheart á thógaint ag an Rialtas arís, rogha a chuireann isteach ar ghnáth daoine, an gnáth lucht oibre agus daoine bochta, seachas cáin breise a chur orthu siúd atá thar a bheith saibhir.

Michael Kitt (Galway East, Fianna Fail)
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I ask for Deputy Ellis's co-operation.

Dessie Ellis (Dublin North West, Sinn Fein)
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I will do my best. I am baffled by the Tánaiste's approach. Not that long ago a 9% VAT rate was introduced to help restaurants and the tourism industry. The Tánaiste has stated this rate has worked. By and large, the industry has improved and more people are eating in restaurants. In that light, I cannot understand why we would add 2% to the VAT rate, given that it will hit people who use such facilities, as well as those seeking to purchase white goods, televisions, cars and so forth. The increase will affect people's spending power, particularly during the January sales when they expect to find bargains.

It is a question of choice. Applying a 1% wealth tax would create more change and collect more money. Under the Government's resolution, the only people who will not be short of money will be those who have it. The least well-off will suffer.

Robert Troy (Longford-Westmeath, Fianna Fail)
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It is interesting to note that not one Government Deputy has spoken in favour of this regressive VAT increase. Last week I attended a meeting of more than 60 retailers in Mullingar and they were outraged by the proposal. They are still outraged by the Government's U-turn on Columb Barracks.

Michael Kitt (Galway East, Fianna Fail)
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Stick to the motion, please.

Robert Troy (Longford-Westmeath, Fianna Fail)
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Traders are reeling and the retail sector is on its knees. The Government has had a change of heart since the VAT rate was increased by 0.5% a number of years ago. Coupled with its U-turn on upward-only rent reviews, its lack of action on commercial rates and the reduction in the size of the redundancy rebate, this measure will cost rather than generate jobs.

Mattie McGrath (Tipperary South, Independent)
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I will try to be brief. Outside the Dáil I am a small businessman. This increase will be disastrous. When the previous Government increased VAT by 0.5%, it needed to reduce it again. Catch me once, shame on you. Catch me twice, shame on me. This is a retrograde step at which I am amazed and aghast. I am not playing to the gallery. One Labour Party Deputy - I am sorry, I do not know his name - has arrived to join the Tánaiste. Someone referred to January sales. All backbenchers will go out before midnight to find bargains because they will not be able to pay for them in the new year.

Mattie McGrath (Tipperary South, Independent)
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In the new year it will be gach rud imithe. James Connolly founded the Labour Party in my town of Clonmel and its Members are going like flies. One has left and many more are on their way.

Timmy Dooley (Clare, Fianna Fail)
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The Government has shown schizophrenic tendencies in respect of VAT. In May it tried to create an aura in respect of job creation. It told us that the VAT reduction on the backs of private pensioners would create a flood of jobs in the tourism sector and help to get the economy going again. It made passionate pleas to get the people behind it. Now it is increasing VAT, seemingly in the belief this will have no impact on economic activity. Clearly, it has no understanding of the impact of a VAT reduction or increase on the domestic economy.

The Government has been priding itself on what it has done for tourism. The budget shows it has no concept of what is involved in that regard. The Government has no concrete proposals to attract tourists to Ireland. The VAT decrease had no impact. This increase will have a considerable-----

Brendan Griffin (Kerry South, Fine Gael)
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The figures are good.

Timmy Dooley (Clare, Fianna Fail)
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Deputy Griffin is from County Kerry. He should know the benefits of tourism and that this measure will destroy the sector in his county.

Brendan Griffin (Kerry South, Fine Gael)
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The tourism figures are positive and the Deputy should examine them. They have improved dramatically.

Michael Kitt (Galway East, Fianna Fail)
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Deputies, please.

Timmy Dooley (Clare, Fianna Fail)
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The Deputy should recognise that the improvement is on the back of the impact of the ash cloud in the preceding year.

Brendan Griffin (Kerry South, Fine Gael)
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The Deputy should recognise that the tourism figures have improved substantially since the last Government left office.

Timmy Dooley (Clare, Fianna Fail)
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The Deputy should come out of the ash cloud. He is buried in fog.

Michael Kitt (Galway East, Fianna Fail)
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Please, Deputies. We are running out of time.

Mattie McGrath (Tipperary South, Independent)
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There are no clouds in County Kerry.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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The Government, in particular the Labour Party, was elected on a promise that it would tackle unemployment. Instead, unemployment has increased. This is another job destruction measure. For 44 months in a row retail business has declined. This measure will depress it further, close many small businesses which are hanging on by their fingertips and cause additional job losses in the retail sector. It is an effective job destruction measure and should be withdrawn immediately.

Joan Collins (Dublin South Central, People Before Profit Alliance)
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This is one of the many smash and grab proposals that does not make sense. This is part of austerity and part and parcel of taking more money out of people's pockets when they can ill afford to have it taken from them. Members said they have been contacted by people and have attended meetings. People from the Crumlin village area have contacted me, including one man who said that if this comes in on 1 January he will close his shop because he will not be able to keep it open. I am sure the Tánaiste has also heard this. If he was on this side of the House, he would be arguing against the 2% increase in VAT. We must be concerned about the workers and jobs will be lost.

Stephen Donnelly (Wicklow, Independent)
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This increase to VAT is dumb policy making. The only figure supplied is €650 million. A 15 year old studying junior certificate economics could do a better job than this. We know this measure will destroy jobs and that there will be second and third order effects. Where are the calculations? An army of people are paid very well to do these calculations. Where is the poverty impact analysis? Where is the total net effect of this? We know that this measure is regressive. The Tánaiste is not presenting any figures regarding the 21% rate of VAT but the bottom decile spends 16% of its income and the top decile spends 6% of its income on these products. By definition, the measure is regressive. According to the logic of the Tánaiste on the jobs initiative, this would destroy jobs. Where is the analysis? There is nothing to allow us to base our vote on and I ask the Tánaiste to withdraw this before coming back in four weeks' time with some analysis to suggest what this will do to the people of Ireland.

Billy Kelleher (Cork North Central, Fianna Fail)
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When this was run by the Bundestag some weeks ago to get approval, I thought the Government would have other proposals to soften the blow of the 2% rise in VAT for the retail sector, which might involve a proposal on upward only rent reviews, but I discovered a complete volte face on rent reviews. The Tánaiste had a crusade on the issue of retail and the need to protect vulnerable retail outlets. This will have a devastating impact on the retail sector. People have a brass neck to come in here without highlighting that there was a massive U-turn on upward only rent reviews. It is quite amazing that the Government slipped this through and said that NAMA might oblige. Will there be publication of the legal advice received by the Government? When the Government parties were on this side of the House, they consistently asked for the publication of legal advice to the Government of the day. Now that they are on the other side of the House, they can publish the legal advice received with regard to the U-turn on upward only rent reviews. This goes to the heart of credibility of any Government presenting a budget that can be accepted by groups of people. The Government parties campaigned with Retail Excellence Ireland and were hugging shopkeepers from one end of the country to the other, promising there would be a change to the upward only rent review.

Mattie McGrath (Tipperary South, Independent)
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It is the kiss of death.

Billy Kelleher (Cork North Central, Fianna Fail)
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It has not happened and I do not think it will ever happen. At least, the Government should publish the legal advice because that might explain the massive U-turn.

Michael Kitt (Galway East, Fianna Fail)
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As the time has elapsed, I must put the question.

Eamon Gilmore (Dún Laoghaire, Labour)
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Can I reply?

Michael Kitt (Galway East, Fianna Fail)
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Very briefly.

Eamon Gilmore (Dún Laoghaire, Labour)
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In fairness, I agreed to extra time on what I thought was a discussion on the VAT issue but it turned out to be a discussion of many other issues. The proposal to increase VAT was contained in Fianna Fáil's four-year recovery plan.

Willie O'Dea (Limerick City, Fianna Fail)
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The Tánaiste is misleading the House again.

Eamon Gilmore (Dún Laoghaire, Labour)
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Does Deputy O'Dea want me to read out the document to him?

Mattie McGrath (Tipperary South, Independent)
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Is the Government adopting all the Fianna Fáil proposals?

Billy Kelleher (Cork North Central, Fianna Fail)
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How long more can the Government blame the previous tenant for the dirty kitchen?

Eamon Gilmore (Dún Laoghaire, Labour)
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I do not want to take up time and the matter is on record. Fianna Fáil proposed that and it is the height of hypocrisy.

Micheál Martin (Cork South Central, Fianna Fail)
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No one proposed a VAT increase in 2012.

Eamon Gilmore (Dún Laoghaire, Labour)
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In the prebudget submission, Fianna Fáil said it would not go ahead with the proposal but did not say where the money would come from. The opposition of Sinn Féin and others to the measure carries no credibility. Those Deputies have come in here and opposed every revenue raising proposal. They even opposed -----

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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We gave the Tánaiste an alternative but he did not have the decency to read it because he would have learned something. It is long overdue that he looks at what other parties are proposing.

Eamon Gilmore (Dún Laoghaire, Labour)
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They even opposed 25 cent on the packet of cigarettes. Those Deputies have no credibility.

Mattie McGrath (Tipperary South, Independent)
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Labour's way or Frankfurt's way.