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Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: Tá fáilte romhat.

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: I have to contradict Mr. Duggan, we do have-----

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: No. There are three Ministers with responsibilities in this area. Deputy Heather Humphreys is the line Minister for Business, Enterprise and Innovation and the Ministers of State, Deputies John Halligan and Pat Breen, also have responsibilities in this area. It is not true to say that there is nobody representing this area.

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: Mr. Duggan might not be seeing it on the ground but it does exist. In the course of our discussions on the cost of doing business in Ireland we have had discussions with officials from Enterprise Ireland, IDA Ireland, the chambers of commerce, InterTradeIreland, the Hotels Federation of Ireland, the Restaurants Association of Ireland, Insurance Ireland and the IFA. The organisations here...

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: Does the IPU have those statistics?

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: They would be very interesting.

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: A breakdown by region would be useful. We will try for a breakdown by county.

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: A lot of local authorities have tried to encourage small and medium enterprises, SMEs, and small retailers to open. Concessions on rates and so on were given where a lot of units closed. We cannot knock that. I can understand the witnesses' point of view, but the local authorities were just trying to encourage business, especially in inner cities and towns. It is important that the main...

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: That goes on in a lot of businesses. Does Mr. Duggan wish to comment?

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: They are coming in for the reference number.

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: Am I be correct in saying it is not zero VAT in other jurisdictions? It certainly is not zero VAT in the UK.

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: What would be the situation with VAT if I wanted to buy a Raymond Weil watch, for example, and I decided to purchase it online?

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: Is Mr. Duggan saying customers do not pay any VAT? Do they pay the VAT charged in the country of origin of the online retailer?

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: Yes, but I still believe if I were to buy a Raymond Weil watch in Geneva, for example, that I would pay the VAT that would be charged there, even if I bought it online, but I would not pay any duty when it comes into the country.

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: So does Mr. Duggan pay the VAT when he sells the item?

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: Okay. Online customers buy one single item for their own personal use and Mr. Duggan is buying items to sell and then he is paying VAT.

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: So if it is a €500 watch it is €100 cheaper.

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: It is very hard to prevent that in any business.

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: That is the case, regardless of whether it is clothing or whatever else. We have heard that people go into a shop and try on clothing from a certain brand and then they go online and buy it. I think that goes on in every country. There is not an awful lot that we can do to prevent it happening.

Joint Oireachtas Committee on Jobs, Enterprise and Innovation: Cost of Doing Business in Ireland: Discussion (Resumed) (24 Apr 2018)

Mary Butler: Is that iParcel?

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