Dan Boyle (Green Party)

The current price differential is predicated on the differences in VAT. The reality is that Irish VAT rates do not apply to food or children's clothing. The VAT increase in the recent budget applies largely to white goods, and even luxury goods and services, and is unchanged for most goods and services in this country. The real price differential comes about as a result of the strength of sterling. Sterling is 86p or 87p to the euro currently, which is way above the value at which the Irish punt entered the euro mechanism. Short of trying to encourage the United Kingdom to become part of the eurozone, that is not a problem we will solve in the immediate future.

My party colleague, a local representative in the Border region, Councillor Mark Deery, made a suggestion on "Morning Ireland" which reflects the reality of many people who are trading and consuming in the Border region. The suggestion has some merit but will be difficult to implement. As part of an overall co-ordinated plan, however, particularly in the short term, it may work. This is a crucial time of the year for retailers. It is when maximum turnover occurs and, as a result, maximum profit is achieved in enterprises. Councillor Deery, without consulting me, his party spokesperson on finance, made a suggestion that a VAT rate of 15% should be introduced for three months. That cannot be applied in a regional context; it would have to be applied nationally.

I would go further and say that any measure of that type would also have to be encouraged with a unified purpose on the part of everyone involved in economic activity in this country. Retailers would have to ensure that the goods and services they were selling were at minimum profit margin. There would have to be co-ordinated activity to ensure that consumers spent the maximum amount of money in their local communities. We are a long way from doing that but that is the road we must travel.

I was listening to a woman who was tempted by the experience of shopping in Newry in the past week. She described the traffic jams on the main Dublin to Belfast road, which was grid-locked for hours on end. She eventually made her way into one of the major shopping centres, The Quays in Newry, only to find that all the parking spaces were full. She drove around that particular shopping centre six times before driving back to where she came from without purchasing anything. An imbalance can be created in terms of what appears to be a gilded opportunity. I suspect that woman spent untold amounts in petrol in trying to achieve savings that were not apparent.

The petrol price differential is significant. The price per litre is 20 cent more here than that in Northern Ireland and the United Kingdom in general. People referred to our retail petrol prices but despite the recent increase in the budget, people would be surprised to learn that our excise duties on petrol are among the lowest in Europe, although the retail prices appear to be higher than those in other countries. That is the reason we have these price differentials.

While I understand the spirit of the Labour Party motion, there is a lack of practicality in dealing with the immediate problem. I accept there is a need for a co-ordinated, cohesive approach from all in the political system to come up with responses to what is a very serious problem. There is also a need to support those who find themselves in regional economies affected by circumstances beyond their control. I hope that there are voices being listened to at Government level that will determine differences of approach that need to be undertaken now. Otherwise, there are communities whose existence economically will be threatened by the lack of appropriate action.