Paul Bradford (Fine Gael)

I thank the Minister of State and his officials for their work on this important legislation. The volume of the end product is substantial. I understand the Minister of State's remarks about the need for certain changes, such as the addition of sections and the removal of archaic language, which have added more pages to the Bill.

I was interested to hear what the Minister of State said about the concept of VAT from a taxation perspective. He mentioned that it accounts for almost a third of our annual tax income. All of us, including the members of the Cabinet, will be contemplating that over the next few weeks, which will be vital for this country. If one judges VAT in the context of the principles of taxation, it will become evident that VAT does not tick the "ability to pay" box. I accept that it is one of the more successful taxes from the perspectives of understanding and ease of collection. Great flexibility is associated with VAT rates.

The Minister of State mentioned EU directives and legislation on a few occasions during his contribution. He referred to our obligations to Europe from the perspective of the VAT directive and the VAT rates. Perhaps it is a sign of things to come, but that is a debate for another day.

The consolidation Bills that are rather infrequently considered by this House and the other House are always necessary and interesting. The end product is always a reflection of the volume of legislative work done by our colleagues over the generations. Various changes and amendments have been made by officials in various Departments during that time. All of that work comes to fruition when a consolidation Bill is produced. It is likely to be some time before the next VAT consolidation Bill is produced. Therefore, this legislation will be with us for some time.

I echo the Minister of State's words of thanks to the officials and our colleagues in both Houses who have played a part in the passing of this legislation. The debate on VAT and taxation in general will not end now that this Bill has been passed. It is here to stay. I hope the important debates in this House and the other House in the next few weeks and months will be interesting and vibrant. It is obvious that the question of taxation is central to the economic survival of this country. It is great that we can hear different perspectives and views - I am resisting use of the word "ideology" - on how we should tax the people and fund the country. This will be a valid and important matter for debate over the next few weeks. I thank the Minister of State for bringing this Bill to the House. I also thank my colleagues and, more importantly, the officials who did the ground work to ensure this legislation was prepared properly.