Thomas Byrne (Fianna Fail)

I understand my recommendations are ruled out of order, but it is important to highlight what is being done here. This specific part of the Value-Added Tax Consolidation Act reduces the VAT rate for a number of services to which a 13.5% tax rate applies to 9%. The difficulty I have with the section is that it applies only to a certain number of services, but it is for the benefit of providing jobs, which is very important. These services include meals, restaurants and hairdressers. One Dáil Member suggested the reason hairdressers are included is because they now operate in all the hotels. I do not have time to get my hair cut in a hotel, but perhaps the Minister will explain why hairdressers are included. I hope the reduction will benefit hairdressers and they will lower their prices and be more competitive. However, I do not feel hairdressers are subject to competitive pressures in the area of cross-Border or tourism trade.

Newspapers have also been included in the VAT reduction. The Minister of State undertook to come back to me with regard to why they are included and as to what representations the industry made, what jobs it promised and what would be delivered. That sector certainly does not have much to do with tourism. I hope the reason it has been included is to do with competitiveness. I hope the reduction in VAT will help cut the price of newspapers, enable them keep people more informed of what is going on and maintain balance and freedom of the press.

Products that have not been included in this section are household fuels such as oil and coal and the range of products that people use to heat their homes. These have a VAT rate of 13.5% and it is a pity there is no tax break for people in that regard. A reduction in this area would create jobs. Currently people ration their fuel during the winter, particularly those who use oil and who must buy in bulk and pay a lump sum. If those people got a tax break, we would see more jobs in the area and we would see more deliveries of oil to houses. However, there is no tax break for people who want to heat their homes during the winter. There are tax breaks for people who want to go for a meal or stay in a hotel all in order to create jobs. Why are there no tax breaks for ordinary people who cannot afford to stay in hotels, eat in restaurants or, in many cases, go to the hairdresser. Many of them do not even buy newspapers because they are too expensive. These people have not been provided for in the Bill. This is unfortunate because we want fairness across all levels of society. There should be fairness for those in fuel poverty, but there is no provision for them in the section.