Feargal Quinn (Independent)

I move recommendation No. 5a:

In page 122, between lines 22 and 23, to insert the following subsection:

"(2) That the VAT Payment Deadline for businesses be extended to 90 days.".

My reason for introducing this recommendation is because the largest challenge facing many businesses is liquidity. This recommendation would help to provide liquidity at only a tiny cost to the Exchequer. Every business must pay its VAT 19 days after the end of the previous month. I propose it is extended to 90 days, three months. The Government will still get its tax but later.

We hear so much about the credit crunch. The Oireachtas Joint Committee on Finance and the Public Service was recently attended by the two banks. It is clear from the figures that the banks are not lending and have no intention of lending for some time. As a result a large number of businesses are short of cash. This proposal will give them cash by allowing them to hold on to their VAT returns for an extra few weeks. It is worthy of consideration. It will help businesses without a cost to the Exchequer. I urge the Minister of State to accept this recommendation.