Feargal Quinn (Independent)

I move recommendation No. 11:

In page 132, lines 18 to 31, to delete paragraph (a).

I did not believe we would reach this recommendation. I wish to declare an interest. The reason for my doing so can be explained by the explanatory memorandum, which states that the first amendment ensures that the sale of food and drink which has been heated and is above the ambient air temperature when provided to the customer, remains liable to VAT at the reduced rate of 13.5% when purchased at a take-away outlet, supermarket, garage or other outlet.

The Minister of State referred to Ireland's low income tax regime on Second Stage. Senator John Paul Phelan made the point that we continue to increase our spending taxes. A recent headline in a Sunday newspaper stated that the Government has some intention — it may not be true — of applying VAT to food. VAT is currently applied to luxury foods but not to basic foods. VAT has never been applied in respect of the latter.

I wish to cite the example of two female executives I know, both of whom are in their 30s and married with one child, who work hard in pressurised environments. These women are the type of people, as was stated on Second Stage, to whom child care is important. They told me recently that, 20 years ago, when their fathers came home at 6 p.m. or 7 p.m., they would ask their mothers what was for dinner. People no longer do this because both parents work.

The women to whom I refer regard themselves as CTT customers, namely, those who cannot cook, who have not time to cook and who are too tired to cook. These are the people about whom the Minister of State is concerned. They informed me that they do not shop in my supermarkets for more than 25% of their goods and that they do not shop in any other supermarkets either. They are under such pressure that they make their purchases at whatever shop happens to be on their way home. The goods they buy are often those that are prepared and ready to eat at home.

These are the products the Minister of State has singled out. I do not believe section 113 was noticed in the Dáil or by the media. It will impose a stealth tax. There were reasons for the numerous stealth taxes that were discussed in previous years. For example, the tax on plastic bags is sensible and understandable and there is a tax on water and bins in the form of water and bin charges. There was an ulterior motive, aimed at the good of the community, behind each of these. However, there is no such excuse for this tax. The Minister has singled out one particular range of goods to add to the list of foods that are already taxed. This tax affects those who are under time and financial pressures, such as parents who both work.

If ever there were a stealth tax, this is it. This provision is being slipped in without explanation. Inflation and the price of foods will increase. These increases will not be huge but this tax is another "little extra". Will the Minister tell us if this is the first step in terms of trying to add VAT to all foodstuffs? This tax is slipping in without being identified or noticed. The Joint Committee on Enterprise and Small Business discussed the groceries order earlier and examined the price of food in Ireland to determine why it has been increasing. One of the reasons is that we have not carried out a regulatory impact analysis on legislation that is passed. Each item of legislation and regulation adds to the cost of business and food. I urge the Minister to re-examine this issue.