Jerry Buttimer (Fine Gael)

Cuirim fáilte roimh an Aire Stáit. I commend Páirtí an Lucht Oibre on tabling the motion. I was intrigued by the commentary from many speakers on the Government side of the House because the reality is simple. Whether we like it, our consumers are being ripped off. We can talk about competition and the groceries order but we are living in a society in which it is very difficult to sell and buy.

I challenge any Senator, and the Minister, to come shopping with me next Saturday morning in Cork city. In many shopping centres and shops the price differential is outrageous compared with the price of products in shops in Northern Ireland and the UK. The reality is that Irish people pay more for their diesel and petrol, despite what Senator Boyle said. They also pay more for their groceries. We have increased our VAT rate. Why did we do that at a time when there is a downturn in the economy? We have an obligation to look after the small and medium-sized enterprises and retail businesses in our country.

Small businesses are in jeopardy as we speak. I am not talking down the economy but outlining the facts. A woman called to see me on Monday in tears because she had spent approximately €100,000 on renovating her premises. The banks will not lend money, the Government has been slow to act and owing to bad fiscal management by Government, councils must consider increasing the commercial rate. What signal does that send to small retailers? I am not talking about the big conglomerates but the people who have small shops and restaurants in the heart of Cork city. I am not talking about chain stores but family-owned businesses that are being put to the pin of their collars. That is not talking down the economy but stating the facts.

Government must show leadership. The Minister of State was one of the first Ministers off the blocks in speaking about pubic service reform. I admire him for that, but we have seen nothing from Government since other than the creation of another quango last week. We need leadership. Senator Boyle, who in opposition was fast to be seen to be on the side of the consumer, has abdicated responsibility, together with his colleagues in government. He has let the people down.

We should have a debate based on reality for the Irish people. Tesco products, for example, are 28% higher here than in the North. Their own brand products are 17% higher in the South than in the North. Dunnes Stores products are 31% higher here than in the North and their own brand products are 11% higher here. Lidl products are 16% more expensive here than in the North. Can somebody explain the reason for that? I do not want to hear about the euro-sterling differential because that does not wash any more.

What has the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Coughlan, done since the Taoiseach infamously asked her to call in the gurus in his off-the-cuff remark in the Dáil? Higher grocery prices have an impact on ordinary people and families making choices when they go shopping. I welcome competition but the biggest mistake made by Government was the increase in the VAT rate. It was a quick-fix solution to address an income deficit and there was no need for it. We should look at what happened in the UK. In the United States President-elect Obama has promised an economic stimulus which will not see taxes increased. The Progressive Democrats' mantra of a low tax Ireland is gone because indirect taxation has spiralled upwards. Fianna Fáil has a great line, which is the call to patriotism. Senator Boyle referred to RTE's coverage of the line of cars heading North last Saturday. It is difficult to blame people when they are being overcharged and ripped off and it is also difficult to tell families that are struggling and trying to make savings to stay put and be patriotic by supporting their own. However, as the Minister of State is well aware given his background, this is about pounds, pennies and pence and struggling families want to save money.

Let us be real. Petrol costs 24% more than the EU average; diesel, 18%; home heating oil, 19%; and an 8% increase in excise duty has not helped. It was introduced as a quick fix solution by a Government that has no plan or vision and that is making it up as it goes along. When the Minister of State went on a solo run recently about the public service, I thought there would be action but, alas, he was on his own and he has been left behind. He is like a cyclist out in front in a race with whom the peloton has not caught up.

All the Green Party secured in the budget was a few bicycles and light bulbs and nothing else. The people of Cork were let down by Senator Boyle's party again when a promise was made regarding Cork docklands but nothing happened. A line issued about Seveso sites, which cost the party nothing.