Joe O'Reilly (Fine Gael)

Mo bhuíochas duit, a Leas-Chathaoirligh, as ucht an fháilte a chur roimh muintir Coill an Chollaigh atá mar mo chuairteoirí anseo inniu. Cuirim fáilte roimh an Aire Stáit. I congratulate the Labour Party on tabling this motion. It is apt, timely and a prescient response to a real problem. This is a major problem. People are going in massive numbers and we have heard stories of tailbacks in Newry, of shops being emptied of people for health and safety reasons over recent weeks and, in the Sunday newspapers, of lists of number plates of people going shopping in a shopping centre in Newry. If this is happening on a widespread scale in a northern direction, there is a consequent issue for local towns in Cavan and Monaghan — my area. It is a real issue that threatens businesses and jobs. When one considers the costs we are prepared to spend to create jobs, surely we should invest in keeping the jobs we have. It would be much cheaper. There must be support for these shops, such as supports in their rates bills and free parking in the towns. Initiatives must be taken to support the shops. A number of small businesses are on the brink of extinction. I had occasion to visit a number of small businesses in the past few weeks and met people literally in tears about the future. It is of great concern.

The greatest of this Government's many failures has been its failure over years to get a handle on price control. This Government has never got to grips with price control or put the issue on the agenda. It is a serious matter that we get control and a watch on prices. The fact that a packet of Pampers nappies would cost €11.23 in the North but €14.99 in the same type of shop in the Republic is a startling figure, but it repeats itself. There is a 20% differential in prices. Unwitting consumers are tricked in that they do not realise the quality is not as good in many of the products they purchase. I also understand the issues Senator Quinn raised regarding distance, however the cost of transport from the UK to here should not necessitate that price differential. I take his point that they could travel and source the materials in Northern Ireland for similar multiple stores here in so far as they were manufactured in England. However we must become more aggressive and watchful on price control and price fixing.

We were unfortunate to increase the VAT rate in this country while it was reduced in the UK. The two compound each other and that is a major difficulty. There is an issue around the VAT rate and the cost differentials in terms of the Anglo-Irish Agreement. Part of the Anglo-Irish Agreement was the goal of achieving a harmonisation between the Republic and Northern Ireland. The different VAT rates fly in the face of the harmonisation in the Anglo-Irish Agreement and we must begin to work towards harmonisation. Earlier, Senator Keaveney said we should begin by trying to achieve a harmonisation of VAT rates and costs of alcohol on the north and south of the Border. This is a major issue.

The Government mismanaged the public finances over an 11-year period and wasted the public finances in areas such as the PPARS computers, the electronic voting machines, the Red Cow roundabout and in smaller ways at lower levels, which has arisen recently regarding FÁS. That has left us without the necessary resources to support our Border shops and local industries properly. We do not have the kind of slush fund we might have had and we are not able to input satisfactorily into the economy. I commend to the Minister of State Fine Gael's recent proposition that the energy windfall tax be used to lower the VAT rate; it should be done instantly. To lower the VAT rate by 1% would be a move towards harmonisation of taxes and a resolution of the problem. The problem must be solved by price control, a movement towards harmonisation of taxes and supports for the shops and individual traders through this crisis, where absolutely necessary.

Consumers need more information. Our consumer people should monitor prices and quality. Without going into individual items, I have information that in a shop such as ASDA in Enniskillen people buy different products in bulk, but I am reliably informed that products are not of the same quality as corresponding products in the mainstream shops. They do not have the same durability and shelf life. This is an anomaly. On one level people are paying less money but there may not be that significant a difference because of the quality of the goods. Information should go out on these issues.

This is a serious matter and will take a multitude of solutions. The Government must accept it as a problem and get to grips with it. I hope this debate could be a starting point. Tonight I hope we accept the problem, examine some of the solutions and begin work on it. It merits an immediate response. It will make ghost towns of the towns of Cavan and Monaghan if we do not do something about it immediately. There is a mass exodus of people and we must take steps, whether free car parking, some action on rates, price control, more consumer information or encouraging the community concept, although this Government cannot openly do that.

Senator O'Malley raised this point about community and the concept of interdependence, and I agree with it. I believe we should support our communities as a first step. This is not necessarily a partitionist stance. No matter where our community is, that should be the first area we support. We support our families and work out from that to the community. I appeal to the Minister to take this as a very serious, urgent matter. It will lose jobs all along the Border. We are talking about dislocation of jobs, subsequent social welfare bills and an enormous cost to recreate these jobs. We will have to get a handle on it and act on it. I am sorry to say that so far the matter has not been seriously dealt with.