Martin Mansergh (Tipperary South, Fianna Fail)

The question of differences in VAT rates between Ireland and the United Kingdom, and especially between Ireland and Northern Ireland, is part of a much broader and more fraught discussion. There would be a vast cost to the Exchequer, which we simply cannot contemplate at this time, in harmonising VAT rates North and South. As I said in response to a question on this broader issue that was put to me on the "Hearts and Minds" television programme, which will be broadcast tomorrow night, there have been swings and roundabouts in this regard over the years. For instance, Northerners have tended in recent years to come to the South for petrol. In recent months, people from the South are heading north of the Border in increasing numbers to do their grocery shopping. This is a broader issue to which there are no simple, short-term solutions. I am sure discussions on the various issues will take place between the motor industry and the Government without prejudice to the desire shared by me and the Minister of State, Deputy Sargent, who has arrived to take my place, to encourage an increased use of public transport.