Margaret Cox (Fianna Fail)

It is to be hoped he will ensure this happens. It would really be something for the money to go back to charity. I draw the Minister's attention to the fact that many charities in this country pay the full 21% rate of non-reclaimable VAT when buying services. For many organisations, that is a substantial additional cost. We must investigate whether there is any other way of proceeding. The Minister may be aware of this from his days in the Department of Health and Children. If one purchases incontinence wear for older people in a pharmacy, one pays the full 21% rate of VAT. If one buys aids or appliances for people to use at home — saving the State money, since one is not looking to the health board to provide them — one also pays the 21% rate of non-refundable VAT.

There is a case in certain areas for people being able to reclaim VAT. With services provided to hospitals, many of which use agency nurses as is happening all over this city to fill immediate vacancies as a result of sickness, staff shortages and so on, the agency employs the nurse, pays the wage, the employer's PRSI, and then charges that plus 21% VAT to the hospital, which must pay up. The Minister for Finance, Deputy Cowen, gets his take out of it and we go around in a circle. It does not make a great deal of sense to see that level of taxation on top of income tax and PRSI on wages. Perhaps the Minister might examine that in association with the Department of Health and Children.

I am proud of the Government and of our fiscal policies over the past five or seven years. It is not a matter of back-slapping but of acknowledging that our policies and economy are the envy of most of Europe and of many other countries. I commend the Minister on his new role and look forward to the initiatives he might present in the next budget.