Brendan Kenneally (Fianna Fail)

VAT on food in restaurants is a different issue, which I will now discuss. There is no VAT on food sold in supermarkets. I accept there is 12% tax on food in restaurants and this is an issue that could perhaps be examined. We all know, particularly since the introduction of the euro, that it is much easier to compare prices when one goes abroad than it was before. Restaurant meals are much cheaper in the rest of Europe than they are here. I do not know whether this is because of the VAT rate here. I do not know if it would make a significant difference but we should examine this as we are starting to suffer in the area of tourism because we are seen as a high-cost destination. It would be useful if a survey on the level of profits in restaurants in Ireland could be carried out as I am not aware of any.

The introduction of the SSIAs was a very innovative approach by the former Minister, which encouraged people to save. Many people had never been in the habit of saving. I am worried about the lack of replacements for the SSIAs when the scheme comes to an end. The lack of a replacement for the SSIA scheme might fuel inflation. I do not know whether the Minister intends to introduce any changes in 2006. Obviously it will not happen in the Finance Act 2005.

This issue should be examined as I am afraid there are inherent dangers present at the same time that so much money is coming into the economy.