Joe O'Reilly (Fine Gael)

Ba mhaith liom mo comhghairdeas agus fáilte a gabháil don Seanadór nua, Séamus Carroll.

The graphic images of the tailbacks into Newry and Enniskillen yesterday can leave us in no doubt that cross-Border shopping is a serious issue for retailers and those working in the retail trade along the Border. It is unfair to public service workers, and it is untrue, to say that they went en masse to the North yesterday. I know from family members that all those who were on strike went on a rota of picket duty and provided emergency cover too. Families whose children were at home from school yesterday took the opportunity to go shopping as traditionally happened on 8 December.

The large numbers travelling North were instructive. Last year the Minister for Finance admitted that €500 million was lost to this economy through VAT increases. It was an own goal to increase VAT rates last year. This needs correction and adjustment. Of course the cost issue arises. Costs are too high in this country and we need to examine our cost structure as part of an ongoing economic adjustment. The VAT issue can be resolved in the forthcoming budget. Taking into consideration the loss of wages, the payments to jobseekers and the loss of revenue, lowering VAT would be cost neutral. I put it to the Leader that something must be done about this problem. It is a crisis for ordinary people who work as retail assistants across the country.