Feargal Quinn (Independent)

The British Government decision yesterday to reduce the VAT rate to encourage more spending will act as a further incentive for people south of the Border to travel north to buy goods affected by that VAT rate. The rate does not apply to basic foodstuffs. One company to which it applies and to which we lose much business is IKEA. It opened last year in Northern Ireland and I understand significant numbers of our people travel to it.

As I drove along the M50 the other day I saw the new IKEA in Dublin. It appears ready to open, but cannot open yet because the planning permission given to it must wait until the work on the M50 finishes. Approximately €20 million in VAT could come to us if that store were open and 500 people would be employed. Therefore, there is a real incentive for us to look again at the situation regarding the planning, which will probably delay the opening of the IKEA store by a full year and affect Government income from VAT and income tax from 500 jobs. It would be worthwhile to look at the situation again and I urge the Tánaiste to do so. She is probably working on this, but she should inquire whether we can do something and overcome the problem.

I am aware there will be much pressure on incomes and on the moneys we have to spend in the coming years. An interesting document was presented yesterday entitled: Global Development: what can you do? Starting points for Members of the Oireachtas. I will read one paragraph:

As a TD or Senator, you have the opportunity to help shape Ireland's future. Similarly, you are in a unique position to support Irish efforts to improve the lives and opportunities of poor and marginalised communities overseas.

I mention this document because we will be under severe pressure for money over the next few years and there is a danger the support we give to the Third World will fall. We are still a rich country and still have more people employed than we had three years ago. We are regarded by these people as wealthy and should be aware of that. Let us ensure Members of both the Seanad and the Dáil have a look at this booklet.