Seanad debates
Wednesday, 26 November 2008
Order of Business
11:00 am
John Gerard Hanafin (Fianna Fail)
The Tánaiste and Minister for Enterprise, Trade and Employment should come before the House because a serious issue has developed as a result of cost differentials north and south of the Border. Although no VAT is levied on food, it is significantly cheaper north of the Border. Two further changes have taken place recently in respect of goods north of the Border. First, VAT rates have been reduced in the North and, second, sterling exchange rates have declined significantly. If and when the economy is rebooted, I suggest we work in tandem with the British Government. Moreover, adopting similar VAT rates would have the positive effect of having an all-Irish dimension. Taking the opportunity to reboot the economy in such a fashion would help the Border counties and might appeal to people's fervour for their country. Nevertheless, many people still will cross the Border if a bottle of whiskey costs €14 less in the North. To be realistic, we must take practical steps and must be able to move quickly. I believe the Government has the capacity to move and to do the right thing, without being caught by ideology, in respect of what is practical and good at all times for the State.
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