Seanad debates

Wednesday, 26 November 2008

11:00 am

Photo of Joe O'ReillyJoe O'Reilly (Fine Gael)

As others have mentioned, people travelling to the North to shop pose a significant problem along the Border. There are tailbacks into Newry and we have heard stories of people leaving overcrowded shops in Enniskillen for health and safety reasons. This serious matter has been worsened by the reduction in the UK rate of VAT and the corresponding increase in our VAT rate. It has implications for jobs in small businesses along the Border.

Will the Leader, a member of the Joint Committee on Enterprise, Trade and Employment, suggest to the Cabinet a support package for small businesses along the Border because they are in trouble? Price control must be kept in mind and we must ensure there are no abuses or disincentives to business, but there must be a support system. If VAT rates cannot be harmonised — it is probably pie in the sky in the short term — something must be done, whether in terms of rate supports or other practical measures. Jobs are being lost, businesses will close and there will be ghost towns along the Border this Christmas. It is a serious matter.

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